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Forex - EUR/USD remains higher as E.Z. data still supports

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Investing.com -

Investing.com - The euro remained higher against the U.S. dollar on Tuesday, after U.S. factory orders data came out higher than expected, as an upbeat euro zone unemployment report continued to support the single currency.

EUR/USD hit 1.3648 during U.S. morning trade, the pair's highest since May 30; the pair subsequently consolidated at 1.3628, rising 0.23%.

The pair was likely to find support at 1.3586, the low of May 29 and resistance at 1.3668, the high of May 27.

Official data showed that U.S. factory orders rose 0.7% in April, beating expectations for a 0.5% gain, after an upwardly revised 1.5% increase in March.

The single currency strengthened earlier, after data showed that the unemployment rate in the euro zone ticked down to 11.7% in April, from 11.8% the previous month, confounding expectations for the rate to remain unchanged.

Separately, Eurostat said consumer price inflation in the euro zone increased by 0.5% last month, down from 0.7% in April and missing expectations for a reading of 0.7%. The rate stands well below the European Central Bank's target of near but just under 2%.

Data also showed that the number of unemployed people in Spain dropped by 111,900 last month, compared to expectations for a 112,300 decline, after a 111,600 fall in April.

But sentiment on the euro vulnerable after data last week showing that the annual rate of inflation in Italy and Spain slowed in May added to expectations that the ECB will take steps to tackle low consumer price growth.

The euro was higher against the pound, with EUR/GBP adding 0.23% to 0.8138.

Also Tuesday, Markit research group said the U.K. construction purchasing managers' index ticked down to 60.0 in May, from a reading of 60.8 the previous month. Analysts had expected the index to remain unchanged last 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.


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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