Forex - EUR/USD falls on U.S. data, ongoing talk of ECB rate cut

The euro moved lower against the dollar on Wednesday after U.S. durable goods orders missed expectations, while ongoing talk that the European Central Bank may trim interest rates to kick-start recovery kept the single currency lower.

In U.S. trading on Wednesday, EUR/USD was down 0.06% at 1.2996, up from a session low of 1.2956 and off from a high of 1.3034.

The pair was likely to find support at 1.2956, the earlier low, and resistance at 1.3084, Monday's high.

In the U.S. earlier, the Commerce Department reported that orders for durable goods dropped 5.7% in March, well beyond expectations for a decline of 2.8%. 

Durable goods for February were revised down to a 4.3% gain from a previously reported 5.6% increase.

The news prompted many market participants to take up safe-haven dollar positions, though gains were muted by contrasting sentiments that the Federal Reserve won't rush to dismantle stimulus programs such as its monthly USD85 billion bond-buying program.

Monetary stimulus tools tend to weaken paper currencies as side effects.

Meanwhile in Europe, weeks of disappointing economic indicators have more and more investors speculating the ECB may consider cutting interest rates.

In Europe earlier, the Ifo index of German business climate fell to a four-month low of 104.4 in April from 106.7 in March.

Analysts had expected the index to tick down to 106.2.

The report came in wake of weaker-than-expected German and eurozone industrial production and service-sector output figures, which stoked expectations for the ECB to cut benchmark borrowing costs.

The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.10% at 0.8524, and EUR/JPYtrading down 0.09% at 129.21.

On Thursday, Spain is to publish official data on the unemployment rate.

The U.S. is to release a weekly government report on initial jobless claims.

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