EUR/USD rises, shrugging off weak German factories data

ForexNewsNow | Published on July 7, 2010 at 10:42 am

forex analysis global forex forex tips FX newsNEW YORK (Forex News Now) – The euro approached a 7-week high against the dollar on Wednesday, shrugging off earlier losses suffered in the wake of disappointing German manufacturing data.

In U.S. afternoon currency trading, EUR/USD traded at 1.2632, up 0.04 percent on the day, nearing Tuesday’s high of 1.2662, the currency pair’s highest since May 21.

Government data showed earlier in the day that German factory orders unexpectedly fell 0.5 percent in May compared with the previous month, as a decline in demand for metals products and fewer big-ticket orders weighed.

According to forex analysis, EUR/USD is likely to touch immediate support around Tuesday’s open, 1.2537, and encounter resistance around the high of May 11, 1.2803.

The euro’s ascent was limited by persisting fears over the financial health of Europe’s banks as FX traders awaited the results of stress tests of some 100 banks.

Meanwhile, the single currency fell against sterling: EUR/GBP traded at 0.8304, down 0.34 percent on the day.

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