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Forex - EUR/USD remains moderately higher after U.S. durable goods data

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Investing.com - The euro remained moderately higher against the U.S. dollar in light trade on Tuesday, after the release of mixed durable goods orders data, as investors awaited the release of additional U.S. economic reports later in the day.

EUR/USD hit 1.2885 during European afternoon trade, the session high; the pair subsequently consolidated at 1.2860, up 0.10%.

The pair was likely to find support at 1.2737, the low of November 21 and resistance at 1.3048, Monday's high.

In a report, the Census Bureau said that U.S. core durable goods orders fell 0.5% in February, disappointing expectations for a 0.5% rise, after a 2.9% increase the previous month.

The report also said that durable goods orders, including transportation items, rose 5.7% last month, more than the expected 3.8% increase, following a 3.8% decline in January.

Meanwhile, the single currency remained supported after euro zone finance ministers on Monday rubber stamped a EUR10 billion international bailout for Cyprus that will see the closure of the country's second largest lender Laiki Bank and inflict heavy losses deposits of more than EUR100,000.

Investors remained cautious however after Eurogroup head, Jeroen Dijsselbloem, said that the rescue program agreed for Cyprus represents a new model for resolving euro zone banking problems and other countries may have to restructure their banking sectors.

He later appeared to backtrack, saying Cyprus was a specific case with exceptional challenges.

The euro was also higher against the pound with EUR/GBP adding 0.21%, to hit 0.8486.

Later in the day, the U.S. was to release a government report new home sales as well as data on consumer confidence.

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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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