Forex Pros – The euro erased gains against the U.S. dollar on Monday, sliding to hit a two-week low after official data showed that German factory orders fell significantly more-than-expected in December.
EUR/USD hit 1.3538 during European late morning trade, the pair’s lowest since January 24; the pair subsequently consolidated at 1.3543, shedding 0.26%.
The pair was likely to find support at 1.3448, the low of January 21 and resistance at 1.3824, last Thursday’s high.
Deutsche Bundesbank said factory orders fell by a seasonally adjusted 3.4%, after increasing by 5.2% in November. Analysts had expected German factory orders to drop by 1.4% in December.
Year-over-year, orders rose by an annualized 19.7%, compared to a jump of 20.6% in November. Analysts had expected orders to rise at an annualized rate of 21.3% in December.
The euro was also down against the pound, with EUR/GBP shedding 0.21% to hit 0.8411.
Also Monday, market research group Sentix said investor confidence in the euro zone rose more-than-expected in February, jumping to the highest level since September 2007.
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