The euro pushed higher against the US dollar on Thursday, as market players took profits, following the greenbacks expansion yesterday after the strong US new home sales report.
EUR/USD pair touched its highest point for todays session at 1.3220 at 5:05 GMT, after which consolidation followed at 1.3208. Support was expected at July 23rd low, 1.3162, while resistance was to be encountered at July 24th high, 1.3255.
US dollar expanded sharply against its major peers on Wednesday after the Commerce Department of the United States said that new home sales climbed to a five-year high in June, up by 8.3% to a seasonally adjusted annual number of 497 000 units, which was the highest since May 2008.
Meanwhile, the common currency received support earlier on Wednesday 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. This data, alongside with the other PMI indicator, tracking activity in services, added to optimism over economic growth in the Euro zone during the third quarter of the year.
On the other hand, the euro was trading lower against the British pound, as EUR/GBP pair erased 0.16% to 0.8607 at 7:11 GMT. EUR/JPY cross was also on negative territory for the day, slipping 0.22% to trade at 132.08 at 7:13 GMT.
The IFO Institute was to release reports on business climate, economic expectations and current assessment in Germany later in the day, while the United States will release data, regarding durable goods orders and initial jobless claims.
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