Forex - EUR/USD trading close to 3-week lows

FTS-Forex Trading: The euro was trading close to three-week lows against the dollar on Wednesday after a series of upbeat U.S. data releases on Tuesday reinforced the view that the economic recovery is on track.

EUR/USD hit 1.3057 during late Asian trade, the pair’s lowest since June 5; the pair subsequently consolidated at 1.3066, dipping 0.09%.

The pair was likely to find support at 1.3000 and resistance at 1.3143, Monday’s high.

U.S. consumer confidence rose to highest level since January 2008 in the current month, data on Tuesday showed, while another report showed that U.S. new home sales rose to an almost five year high May.

A separate report showed that U.S. durable goods orders rose unexpectedly in May.

Fed Chairman Ben Bernanke said last week that the bank could begin tapering asset purchases by the end of this year if the economy continues to pick up.

Meanwhile, fears over a credit squeeze in China eased after the country’s central bank indicated Tuesday that it was acting to support financial institutions with liquidity.

The euro was lower against the pound and the yen, with EUR/GBP down 0.14% to 0.8470 and EUR/JPY falling 0.46% to 127.34.

Finance ministers from the European Union were to hold talks in Brussels on Wednesday, while the U.S. was to release revised data on first quarter economic growth.