By CountingPips.com
The euro has continued to climb higher in forex trading against the U.S. dollar today as the EUR/USD currency pair touched its highest level since May 3rd. The European common currency is increasing for a second straight day vs. the dollar to start the week as it continues its impressive rebound off of the four-year lowpoint reached on June 7th at the 1.1876 exchange rate. The EUR/USD opened the day near the 1.3171 mark and dipped in early trading to 1.3146 before
Economic news released today showed that euro zone producer prices edged up by 0.3% in June while increasing by 3.0% on an annual basis through June. The data failed to surpass economic forecasts that were expecting a 0.4% increase for the month while showing a 3.1% increase on an annual basis.
Out of the United States today, the important consumer spending report showed that household purchases were flat in June while personal incomes were also unchanged, according to the report by the Department of Commerce. Consumer spending makes up roughly 2/3 of US economic activity and June’s data follows a 0.1% uptick from May. Personal income data had risen by 0.3% in May. Market forecasts were expecting consumer spending to rise by 0.1% and personal incomes to increase by 0.2% for the month.
Pending home sales in the US fell in the month of June and dropped to the lowest level on records, according to the latest report from the National Association of Realtors. Pending home sales declined by 2.6% in June following a revised 29.9% decrease in May. On an annual basis, pending home sales fell by 20.1% from the June 2009 level and declined to the lowest level since sales records began in 2001 for the index.
EUR/USD Hourly Chart – The EUR/USD continuing to advance higher over the past week to the 1.3200 exchange rate for the first time since early May. The pair yesterday overcame the Fibonacci 61.8 percent retracement level (near 1.3075) on the decline from 1.3691 on March 17 to 1.1876 on June 7th.
