EUR/USD trimmed earlier gains

The euro pulled back from over 1-month highs against the US dollar on Wednesday, as market participants were expecting the report on US new home sales, scheduled for release later in the day.

EUR/USD slipped from a session high at 1.3257 to reach 1.3207 at 13:00 GMT. At 13:37 GMT the pair was trading at 1.3217, easing down 0.05% for the day. Support was expected to be found at July 22nd low, 1.3133, while resistance was to be encountered at June 20th high, 1.3300.

The common currency received support earlier today after a report said that Advance Manufacturing Purchasing Managers’ Index in the Euro zone rose to a reading of 50.1 during July, exceeding expectations that the index would remain below the 50.0 level, at 49.1, after in June this indicator showed a value of 48.8. In addition, German manufacturing sector expanded unexpectedly in July, while the rate of increase was larger. Manufacturing PMI rose to 50.3 in July from 48.6 in June. Preliminary estimates pointed that this index will remain in the contraction zone, at 49.2. Last but not least, French manufacturing PMI advanced to a 17-month high of 49.8 in July from 48.4 in June, while the PMI in the sector of services increased to a reading of 48.2 in July from 47.2 during the preceding month.

Meanwhile, it became clear that the Flash Manufacturing PMI in the United States rose to 53.2 in July, surpassing estimates of a value of 52.6, while in June the index stood at 51.9. This was the highest value of the index for the past four months. Indicators, gauging employment and new orders, registered stable gains, contributing to the overall results.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, advanced 0.3% to 82.30.

Elsewhere, the euro was trading on higher levels against the pound, as EUR/GBP cross added 0.16% to 0.8619 at 13:47 GMT. Additionally, GBP/JPY pair surged 0.71% to trade at 153.95 at 13:49 GMT.

US new home sales report was expected within minutes.