The euro trimmed its earlier gains against the US dollar today, following a report to show that US durable goods orders edged higher in August, exceeding preliminary estimates, which implied that factory sector may show an improved performance during the third quarter of the year.
Having touched a session high at 1.3519 earlier, EUR/USD cross fell again below 1.3500 to trade at 1.3495 at 13:19 GMT. Support was likely to be received in the area 1.3430-1.3450, while resistance was to be encountered at September 23rd high, 1.3544.
Today it became clear that durable goods orders in the United States rose by 0.1% in the month of August, supported mostly by higher demand for automobiles. Preliminary estimates, pointing a 0.1% dip, were exceeded. Durable goods orders excluding transportation contracted by 0.1% in August, while new orders for core durable goods, which are viewed as a gauge of business spending plans advanced 1.5% during the same month, marking its fifth monthly increase in six months. This data could give a certain boost to Q3 growth outlook. Julys result was revised to a larger drop of 8.1% from 7.4% previously. During the first eight months of 2013 durable goods orders in the country demonstrated a moderate increase by 4.1% in comparison with the same period in 2012. All in all, the report presented a mixed set of data, especially after the large downward revision in July.
In the mean time, the euro showed little reaction to the upbeat German data, released earlier on trading Wednesday. According to data by Gfk, the index of German consumer confidence rose to 7.1 in October, marking its highest value since September 2007, from a reading of 6.9 in the preceding month, while expectations pointed an increase to 7.0. This data came after on Tuesday the IFO institute reported that German business climate index, based on a survey of 7 000 executives, increased for the fifth consecutive month in September, reaching a reading of 107.7, after the index stood at 107.6 in August. Values above the key level of 100.0 are usually an indication that sentiment was showing predominant optimism.
Elsewhere, the euro was losing ground against the British pound, as EUR/GBP cross fell 0.19% for the day to trade at 0.8405 at 14:05 GMT. EUR/JPY pair, on the other hand, was advancing 0.27% to trade at 133.43 at 14:06 GMT.
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