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Forex - EUR/USD tumbles on fears over slowdown in global growth

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Forex Pros -The euro fell sharply against the U.S. dollar on Thursday, as a spate of weak economic data as well as fears over Greece and the outlook for U.S. growth spurred a flight to safety.

EUR/USD hit 1.4232 during early U.S. trade, the pair's lowest since June 17; the pair subsequently consolidated at 1.4153, tumbling 1.38%.

The pair was likely to find short term support at 1.4072, the low of June 16 and a three-week low and resistance at 1.4356, the days high.

The U.S. Labor Department said earlier that the number of people filing for initial jobless benefits last week rose to a seasonally adjusted 429,000 from 414,000 the previous week, confounding expectations for a decline to 410,000.

Earlier Thursday, preliminary data showed that private sector activity in the euro zone grew at its slowest rate in more than a year-and-a-half in June.

Meanwhile, in China, the preliminary HSBC China purchasing managers' index fell to an 11-month low of 50.1 in June. A reading above 50 indicates expansion.

The data came one day after the Federal Reserve cut its cut its 2011 economic growth forecast for the U.S. to a range of 2.7% to 2.9%, down from a previous estimate of 3.1% to 3.3%. Policymakers also cut their outlook for growth in 2012 and raised estimates for unemployment.

The euro was also lower against the pound, with EUR/GBP shedding 0.61% to hit 0.8876.

Also Thursday, official data showed that U.S. new home sales fell less-than-expected in May, declining 2.1% to a seasonally adjusted 319,000 units, from an upwardly revised 326,000 units in April.

Analysts had expected the number of new home sales to decline to 310,000 units.

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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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