Forex - EUR/USD trims losses as Fitch affirms U.S. AAA rating
Investing.com
Published Aug 16, 2011 10:24AM ET
EUR/USD pulled back from 1.4353 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.4412, still down 0.22% on the day.
The pair was likely to find support at 1.4149, the low of August 12 and short-term resistance at 1.4476, Monday’s high and a three-week high.
Earlier in the day, ratings agency Fitch affirmed its triple-A credit rating on the U.S. and said the outlook was ‘stable’, reflecting the country’s "pivotal role in the global finance system".
"The U.S. economy remains one of the most productive in the world, reflected in levels of income per head that are substantially higher than the 'AAA' median and other major 'AAA' sovereigns," Fitch said.
The euro came under pressure earlier after data showed that German economic growth nearly stalled during the second quarter, increasing by 0.1% compared to growth of 1.3% in the preceding quarter and below expectations for a 0.5% increase.
A separate report said that the euro zone’s gross domestic product increased by 0.2% during the second quarter, slowing from growth of 0.8% in the preceding quarter and below expectations for a 0.3% gain.
The downbeat data added to worries over growth prospects for the single currency bloc amid the region’s ongoing sovereign debt crisis.
Markets were also awaiting a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy in Paris later in the day to address the region’s debt issues.
Elsewhere, the euro was also down against the pound, with EUR/GBP shedding 0.27% to hit 0.8788.
Also Tuesday, official data showed that U.S. industrial production rose by a seasonally adjusted 0.9% in July, above expectations for a 0.5% increase.
Separately, the U.S. Census Bureau said that the number of building permits issued in the U.S. fell 3.2% to a seasonally adjusted 0.60 million in July, while U.S. housing starts fell 1.5% to hit a seasonally adjusted 0.60 million.
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Written By: Investing.com
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