Forex - EUR/USD Pares Gains After Greenspan Remarks

Forexpros – The euro pared gains against the U.S. dollar on Tuesday, pulling back from a four-day high, following remarks by former Federal Reserve Chairman Alan Greenspan.

EUR/USD pulled back from 1.4499, the pair’s highest since August 17, to hit 1.4409 during U.S. morning trade, still up 0.36% over the day.

The pair was likely to find support at 1.4258, the low of August 19 and a four-day low and resistance at 1.4499, the day’s high.

Earlier in the day, Mr. Greenspan saying the euro was “breaking down," adding that resulting difficulties in the European banking system could pose a threat to U.S. economic growth.

The euro rallied earlier after data showed that Germany’s manufacturing purchasing managers’ index remained unchanged at 52.0 in August, beating forecasts for a decline to 50.8.

The euro zone’s manufacturing PMI fell to 49.7 from 50.4 in July. Economists had forecast a reading of 49.5. The region’s services PMI slipped to 51.5 from 51.6 in July, holding above forecasts for a reading of 50.7.

A separate report showed that Germany’s ZEW index of economic sentiment fell sharply in August, as fears over the outlook for global growth weighed.

The euro was also lower against the pound, with EUR/GBP slipping 0.12% to hit 0.8717.

Also Tuesday, official data showed that new home sales in the U.S. fell more-than-expected last month.

The Census Bureau said that new home sales fell to a seasonally adjusted annual rate of 298K, from 312K in the preceding month. Analysts had expected new home sales to fall to 310K last month.




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