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Forex - EUR/USD erases gains after upbeat U.S. durables data

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Forexpros - The euro erased gains against the U.S. dollar in volatile trade on Wednesday, pulling back from the daily high, following the release of significantly stronger-than-expected U.S. data on factory production.

EUR/USD pulled back from 1.4482, the daily high, to hit 1.4425 during U.S. morning trade, slipping 0.09%.

The pair was likely to find support at 1.4346, the low of August 22 and short-term resistance at 1.4499, Tuesday's high and a four-day high.

The Commerce Department said that core durable goods orders, which excludes transportation items, rose by 0.7% in July, confounding expectations for a 0.4% decline.

The previous month's figure was revised up to 0.6% from a previously reported 0.1% increase.

Durable goods orders, which include transportation items, jumped by a seasonally adjusted 4.0% in July, doubling expectations for a 2.0% gain.

June's figure was revised to a 1.3% drop from a previously reported 2.1% decline.

But the greenback remained under pressure amid speculation that Federal Reserve Chairman Ben Bernanke may indicate fresh economic stimulus is necessary when he speaks at the Fed's annual retreat in Jackson Hole later in the week.

Meanwhile, the euro was higher against the pound, with EUR/GBP gaining 0.44% to hit 0.8792.

Earlier in the day, official data showed that euro zone industrial orders fell unexpectedly in June, posting the sharpest monthly fall since September 2010.

A separate report showed that the Ifo Institute's index of German business climate fell to a 14-month low this month.

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

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