FXstreet.com (Barcelona) - The EUR/USD fell around 70 pips from the 1.2675 to the 1.2602 just before the US GDP data, but in the first minutes after the inform was published, the pair began to rise the 1.2640, then the EUR/USD has fallen to be traded at the 1.2620/40 range in a new attempt to break the 1.2600 support.
If the pair breaks the 1.2600, it could advance towards Feb 20 low at 1.2565 would come into play, before, 1.2515 (Feb 18 low). Once beyond there, Euro would be at three-month low.
According to Nick Nassad, Currency market analyst with CMS Forex, the reports was a very bad signal fro weak economic activity ahead, whatever, the USD is currently the safe haven currency of choice: The report showed businesses inventories shrank $19.9 billion in the fourth quarter, instead of rising by $6.2 billion as Commerce originally estimated. That is a strong signal that businesses are entrenching themselves for weak economic activity ahead