Euro Brighter as Lackluster U.S Economic
July 29, 2010 11:51
A string of lackluster economic reports recently has weighed on the greenback and led investors to cut short positions in the euro.
The single currency touched an 11-week high against the dollar at $1.3045 on Tuesday, helped by strong bank earnings and gains in European equities, following last week's favourable results of regulatory stress tests.
Traders said the 'risk-on' mood has cooled a little bit, hurt by factors like mixed U.S. durable goods data and Fed's beige book. The Beige Book pointed to a less-than-booming recovery with sluggish housing markets and sales of costly items like new cars weakening.
On technically near-term resistance for the euro is seen at the May 10 high of $1.3095, followed by $1.3125 which is the 38.2 percent retracement of the December-June move. Chartists say a sustained break above the $1.30 level could place the euro in a new $1.30-$1.35 trading range in the coming weeks.
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