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Forex - EUR/USD sideways as mixed U.S. data allows for choppy trading

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Shutterstock photo - The euro jumped in and out of positive territory against the dollar on Tuesday in very choppy trading, as investors digested mixed U.S. data and fallout from Cyprus's bailout that threw the fate of bank deposits up in the air.

In U.S. trading on Tuesday, EUR/USD was down 0.05% at 1.2847, up from a session low of 1.2829 and off from a high of 1.2890.

The pair was likely to find support at 1.2737, the low from Nov. 21, 2012, and resistance at 1.3048, Monday's high.

U.S. economic indicators released earlier sent mixed signals to the market.

The Conference Board reported earlier that its index of consumer confidence fell unexpectedly in March, dropping to 59.7 from February's 68.0 reading.

Analysts were expecting the index to remain unchanged in March.

Meanwhile, the U.S. Census Bureau reported that new home sales in the U.S. came in at 411,000 in February, missing expectations for a gain of 422,000 units and well below a 431,000 rise in January.

Home prices, however, continue to improve.

The Standard&Poor's/Case Shiller composite 20-city home price index rose by 8.1% in January after gaining 6.8% in December, beating expectations for a rise by 7.9%.

Elsewhere, other parts of the economy continue to face potholes along the road to recovery.

In the U.S., the Census Bureau said that U.S. core durable goods orders fell 0.5% in February from January, defying expectations for a 0.5% rise and well below a 2.9% increase the previous month.

However, overall durable goods orders, which include transportation items, jumped up 5.7% last month, well beyond market calls for a 3.8% increase, following a 3.8% decline in January.

Meanwhile, market participants continued to digest Cyprus's EUR10 billion rescue package arranged by its European neighbors and the International Monetary Fund, which called for the closure of the country's second-largest lender, Laiki Bank.

The bailout deal guaranteed that accounts holding EUR100,000 or less will continue to be insured and likely shifted to another financial institution, though the fates of larger accounts remained up in the air, with depositors and bondholders facing haircuts, which continued to roil currency markets on Tuesday.

Eurogroup head Jeroen Dijsselbloem said terms of the rescue package may serve as a template for other European bailouts, which rattled nerves initially fanning fears that future financial lifelines may require similar banking-sector restructurings, though the Dutch Finance Minister later backtracked on that statement.

The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.15% at 0.8481, and EUR/JPY trading up 0.34% at 121.45.

On Wednesday, the U.S. is to produce industry data in pending home sales and a government report on crude oil stockpiles. - 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.

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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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