EUR/USD drops to fresh 1-month lows

FXStreet (Córdoba) - EUR/USD dropped to marginal new lows for the day following the release of the latest string of US data, including durable goods orders, consumer confidence, Markit services PMI and new home sales.

EUR/USD extended the decline on Tuesday, after taking a breather on Monday, as investors come back from the long weekend and continue to digest more supportive data and comments from Fed’s Chair Yellen.

EUR/USD bottomed out at 1.0872 in recent dealings, hitting its lowest level in a month, and it was last trading at 1.0895, down 0.73% on the day.

On the data front, US durable goods orders fell by 0.5% in April, but excluding transportations rose by 0.5%, while March figures were upwardly revised. Consumer confidence index climbed to 95.4 in May (95.0 exp) and new home sales increased by 6.8% to 517,000 annual rate.

On Friday, Fed Chair Janet Yellen said it would be “appropriate at some point this year” to start raising rates, lifting confidence the Fed will act sooner after a soft series of Q1 data sparked skepticism.

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