EUR/USD breaks above 1.3 on U.S. housing data

NEW YORK (Forex News Now) – The euro jumped against the dollar on Monday, breaking above the 1.3 mark, on upbeat U.S. housing data and as FX traders’ risk appetite improved.

In U.S. afternoon currency trading, EUR/USD traded at 1.3, up 0.68 percent on the day, close to the daily high of 1.3003.

Official data showed earlier that new U.S. home sales rose sharply in June compared with the previous month, and at a faster rate than expected.

According to the Commerce Department, sales rose to an annual rate of 330,000 in June from a revised 267,000 in May. Analysts had expected June’s figure to come in at 317,000, two global forex news outlets reported.

According to forex analysis, EUR/USD was likely to touch support around the low of July 21, 1.2732, and encounter immediate resistance around the high of May 10, 1.3094.

The euro’s gains also came amid relief over the results of European bank stress tests, which showed that most European banks had sufficient capital cushions to pass the tests.

Meanwhile, the euro climbed versus sterling: EUR/GBP traded at 0.8394, up 0.24 percent.