Shutterstock photo
Markets

Forex - EUR/USD edges lower after positive U.S. data

Shutterstock photo

Shutterstock photo

Investing.com - The euro edged lower against the U.S. dollar on Friday, as the release of positive U.S. economic data added to expectations for a near-term end to the Federal Reserve's bond-buying program.

EUR/USD hit 1.2905 during European afternoon trade, the session low; the pair subsequently consolidated at 1.2921, slipping 0.08%.

The pair was likely to find support at 1.2834, the low of May 22 and resistance at 1.2994, the session high.

Official data showed that U.S. core durable goods orders rose 1.3% in April, beating expectations for a 0.5% increase, after a 1.7% decline the previous month.

Durable goods orders, including transportation items, rose 3.3% last month, more than the expected 1.5% increase, after a 5.9% fall in March.

The data came after Fed Chairman Ben Bernanke said on Wednesday that the bank could begin tapering its bond-buying program.

In testimony to the U.S. Joint Economic Committee, Fed Chairman Bernanke said a decision to scale back the Fed's asset purchase program could be taken in the "next few meetings" if economic data continued to improve.

The euro strengthened earlier, after the Ifo Institute said its German business climate index rose to 105.7 in May, from a reading of 104.4 the previous month, beating expectations for an increase to 104.5.

A separate report showed that the Gfk German consumer climate index rose unexpectedly in May, ticking up to 6.5 from a reading of 6.2 the previous month. Analysts had expected the index to remain unchanged this month.

The euro was steady against the pound with EUR/GBP easing up 0.06%, to hit 0.8565.

Also Friday, the British Bankers' Association said mortgage approvals rose by 32,200 in April, less than the expected 32,700 increase, after a 31,400 rise the previous month.

Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx