Euro touches one-month trough after avalanche of U.S. data

Euro touches one-month trough after avalanche of U.S. data

26 May 2015, 16:36
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On Tuesday the euro was at one month lows against the stronger greenback after an avalanche of fresh economic reports from the United States which mainly indicated that the economy is regaining ground after a sharp slowdown in the first quarter.

EUR/USD was down 0.75% to 1.0895, the weakest one since April 28.

The single currency was under a heavy selling pressure as fears over Greek debt default continued to weigh.

The U.S. Commerce Department said that orders for long lasting manufactured goods fell 0.5% in April, but the previous month’s figure was revised up to a gain of 5.1% from 4.7%.

Core durable goods orders, which exclude transportations items, rose 0.5%, ahead of expectations for a rise of 0.4%, after a 0.6% increase in March.

Orders for nondefense capital goods excluding aircraft, a key measure of business investment jumped 1.0% from a month earlier, easily outstripping forecasts for an increase of 0.3%.

Meanwhile, Bloomberg reported that purchases of new homes in the U.S. rose more than it had been expected in April, a sign this part of the market is picking up steam during the busiest selling period of the year.

Sales jumped 6.8 percent to a 517,000 annualized pace from a 484,000 rate in the prior month, figures from the Commerce Department showed Tuesday in Washington. The median forecast of 70 economists surveyed by Bloomberg called for 508,000. Prices picked up and inventory was little changed.

Moreover, according to the S&P/Case-Shiller 20-city composite index released Tuesday, U.S. house prices climbed 0.9% in March to take the year-on-year advance to 5%. With seasonal adjustment, prices were up by 1%, the report said.

Nineteen of the 20 cities measured showed gains, led by the 3% jump in San Francisco; only New York saw a decline, with a 0.1% dip. San Francisco, at 10.3%, has the highest year-to-year gain; Cleveland and Washington D.C. are tied for the lowest, at 1%.

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