The euro appreciated vis-Ã -vis the U.S. dollar today as the single currency tested offers around the $1.4610 level and was supported around the $1.4470 level. Technically, todayâ€™s intraday low was right around the 23.6% retracement of the move from $1.4965 to $1.4310. The common currency moved to two-week highs on weaker-than-expected U.S. economic data that saw November durable goods orders rise 0.1%, less than the 3.0% expected. The ex-transportation component was off 0.7% and capital goods orders excluding aircraft â€“ a good proxy for business investment â€“ was off 0.4%, the second consecutive monthly decline. Other data released today saw weekly initial jobless claims up 1,000 to 349,000 while continuing jobless claims rose 75,000 to 2.71 million, the highest level since November 2005. Also, November building permits were revised to -0.6% from -1.5%. The federal funds futures market is now pricing in about a 66% chance the Federal Open Market Committee will reduce the fed funds target rate by 25bps to 4.00%. Euro bids are cited around the US$ 1.4165 level.
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