FXStreet (Córdoba) - The EUR/USD trades below 1.3400 for first time in over 8-months as the recent bearish bias was fueled by better-than-expected US GDP Wednesday.



The US economy grew 4.0% in 2Q according to preliminary data released today, versus a 2.1% fall the previous quarter. Meanwhile, inflation measured by the PCE deflator, rose 2.3% above Fed’s target. Solid growth and inflation data propelled the greenback across the board and sent the EUR/USD to an 8-month low of 1.3366 during the New York session.



Attention now turns to the FOMC decision due at 18:00 GMT. The Federal Reserve is expected to reduce its monthly bond purchases for the sixth time to $25 billion from $35 billion. In the absence of surprises, dollar reaction should be limited and short-lived.

EUR/USD technical levels



At time of writing, the EUR/USD is trading at 1.3372, 0.26% below its opening price with next supports lining up at 1.3359 (Nov 12 2013 low) and 1.3300/1.3295 (psychological level/Nov 3 2013 low). On the other hand, resistances are seen at 1.3421 (200-week SMA broken today), 1.3444 (Jul 28 & 29 highs) and 1.3465 (10-day SMA).



Related Articles
  1. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  2. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  3. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  4. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  5. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  6. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  7. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  8. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  9. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.
  10. Investing Basics

    The Risks Of Buying Bitcoin

    Virtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
RELATED TERMS
  1. No results found.

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!