The EUR/USD rose to its highest level since May 28th before falling back a bit due to weakness in U.S. equities. Traders were motivated to take on further risk following a successful auction of Spanish debentures earlier in the day. But mixed U.S. economic data sank equities as the S&P 500 finished up marginally with a gain of 0.13%.
Dollar weakness was prevalent throughout the U.S. trading session as the EUR/USD traded higher at 1.2392, up from an opening day price of 1.2272. The cable was higher as well, closing up at 1.4817 after opening at 1.4707. The dollar was stronger versus the yen as the USD/JPY traded below the support level of 90.80, only to close at 90.84.
U.S. data was mixed on a news heavy day. Core CPI came in as forecasted at 0.1%. The current account was better than expected, coming in lower at -109B on expectations of -120B. However, weekly unemployment claims were higher than expected at 472K on forecasts of only 452K. The Philly Fed Manufacturing Index was also significantly lower at 8.0 with a forecasted value of 21.1.
The calendar is lacking any major economic data releases for today's trading. As such, traders will want to follow the movements of the major equity indices as the dollar has recently been trading in an inverse relationship to equities. Strength in stocks could propel the EUR/USD to its next resistance line which rests at 1.2450.
