Forex: Euro rebounds against the U.S Dollar after weak U.S data

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The Euro regained losses today against the Dollar, particularly after the release of disappointing U.S. data. The decline of durable goods orders by 0.9% in February was worse than the expected 1.0% growth indication that the U.S economy is still weak. This contrasts the E.U. economic performance, where we have seen recently positive data, thereby giving cause for a rate hike by the ECB.

Despite the debt crisis in the peripheral countries of the Eurozone and Portugal being in the headlines lately, the EURUSD pair is moving up today. On Wednesday the prime Minister of Portugal resigned after Parliament rejected austerity measures. However, the Euro was kept supported by an increase in risk appetite as investors moved away from the low yielding U.S Dollar. EURUSD gained over 86 pips to reach a U.S. session high of 1.4219 at 18:00 GMT from opening 1.4134.