Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - EUR/USD higher as global growth worries ease

Published 10/16/2012, 03:33 AM
Updated 10/16/2012, 03:33 AM

Investing.com - The euro was higher against the U.S. dollar on Tuesday, as broad concerns over the global economic recovery eased and Monday’s better-than-forecast U.S. retail sales data bolstered risk appetite.

EUR/USD hit 1.3001 during early European trade, the pair’s highest since October 8; the pair subsequently consolidated at 1.2994, gaining 0.36%.

The pair was likely to find support at 1.2889, Monday’s low and resistance at 1.3024, the high of October 8.

Investor confidence was boosted on Monday after official data showed that U.S. retail sales rose by a seasonally adjusted 1.1% in September, beating expectations for a 0.8% increase.

The data came after better-than-forecast Chinese trade data over the weekend eased concerns over a slowdown in the world’s second largest economy.

Demand for the single currency was also underpinned by hopes that Spain will formally request a bailout for its euro zone partners in the coming weeks and activate a bond buying program by the European Central Bank aimed at lowering borrowing costs in the peripheral euro zone.

Elsewhere in the euro zone, Greek government officials indicated Monday that an agreement with international creditors on deficit reductions is unlikely to be reached before Thursday’s European Union summit.

The euro was higher against the pound and the yen, with EUR/GBP up 0.24% to 0.8076 and EUR/JPY advancing 0.69% to 102.51.

Later in the day, the euro zone was to release official data on consumer price inflation, while the ZEW Institute was to publish data on German economic sentiment. In addition, Spain and Greece are scheduled to hold auctions of government debt.

The U.S. was to release government data on consumer price inflation and industrial production.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.