NEW YORK (Forex News Now) – The euro slid against the dollar on Wednesday, giving up some of the previous day’s gains as traders awaited data on Germany’s manufacturing sector.
In early Asian midday currency trading, EUR/USD traded at 1.261, down 0.13 percent on the day, after falling from Tuesday’s high of 1.2662, the currency pair’s highest since May 21.
Later Wednesday, Germany’s central bank was due to publish a report on the number of new purchase orders placed with manufacturers in May, a leading indicator of demand for German industrial products.
The European Union’s statistics agency was also scheduled to release a final estimate of the euro zone’s gross domestic product in the first quarter.
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 gains versus the dollar on Tuesday came following an upbeat outlook by Australia’s central bank on the global recovery and amid hopes that Europe’s debt crisis will not worsen.
Meanwhile, the euro fell against sterling: EUR/GBP traded at 0.8324, up 0.09 percent on the day.