EUR/USD hits 3-week low on strong US data

Currencies Direct June 26th 2013 - < 1 minute read

The euro slumped to a three-week
low against the dollar in Asia on Wednesday (June 26th) as economic
data from the US suggested the Federal Reserve is still on track to
unwind stimulus later this year.

EUR/USD hit 1.3057 in overnight,
its lowest since June 5th, before consolidating down 0.10 per cent
at 1.3068.

The single currency was also
trading down against sterling, with the EUR/GBP
exchange rate
falling 0.15 per cent to 0.8470.

A trio of economic reports out
Tuesday showed the US economy to be in rude health, supporting the
Fed’s goal to taper its bond buying in the coming months.

US consumer confidence rose to the
highest level since January 2008 this month, the Conference Board
said, while another report showed that new home sales rose to an
almost five-year high during May.

A third report from the Commerce
Department shows US orders for durable goods rose faster than
predicted in May.

Meanwhile European Central Bank
president Mario Draghi said on Tuesday that the current climate in
the eurozone continues to warrant easy monetary policy, with high
unemployment and low inflation persisting.

Investors will be looking ahead to
Wednesday’s Germany Gfk report on consumer spending, a key
indicator of the health of Europe’s largest economy.

Written by
Currencies Direct

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