Investing.com - The euro slipped lower against the U.S. dollar in holiday thinned trade on Wednesday, as investors awaited the outcome of the European Central Bank’s policy meeting on Thursday.
EUR/USD hit 1.2549 during U.S. morning trade, the pair’s lowest since Friday; the pair subsequently consolidated at 1.2560, shedding 0.38%.
The pair was likely to find near-term support at 1.2518, the low of June 22 and resistance at 1.2626, Tuesday’s high.
The ECB was widely expected to cut euro zone interest rates to a record low 0.75% from 1.00% to help bolster growth in the region, following a recent string of weak economic data.
Earlier in the day, the final reading of the euro zone services purchasing managers’ index came in at 47.1 in June, slightly above the preliminary estimate of 46.8, but holding below the 50 level which separates contraction from growth for the fifth consecutive month.
In addition, the Bank of England was expected to implement a fresh round of stimulus measures at its meeting on Thursday, in order to shield the recession hit U.K. economy from effects of the euro zone’s debt crisis.
Investors were also awaiting Friday’s U.S. nonfarm payrolls report, amid speculation that the Federal Reserve could implement a third round of quantitative easing to shore up the economy, after June’s data disappointed market expectations.
The euro edged higher against the pound, with EUR/GBP inching up 0.11% to 0.8044, but remained weaker against the yen, with EUR/JPY down 0.37% to trade at 100.21.
Also Wednesday, official data showed that retail sales in the euro zone rose by a seasonally adjusted 0.6% in May, beating expectations for a 0.3% gain, but total sales for April were revised down to a 1.4% drop from a previously reported decline of 1%.
EUR/USD hit 1.2549 during U.S. morning trade, the pair’s lowest since Friday; the pair subsequently consolidated at 1.2560, shedding 0.38%.
The pair was likely to find near-term support at 1.2518, the low of June 22 and resistance at 1.2626, Tuesday’s high.
The ECB was widely expected to cut euro zone interest rates to a record low 0.75% from 1.00% to help bolster growth in the region, following a recent string of weak economic data.
Earlier in the day, the final reading of the euro zone services purchasing managers’ index came in at 47.1 in June, slightly above the preliminary estimate of 46.8, but holding below the 50 level which separates contraction from growth for the fifth consecutive month.
In addition, the Bank of England was expected to implement a fresh round of stimulus measures at its meeting on Thursday, in order to shield the recession hit U.K. economy from effects of the euro zone’s debt crisis.
Investors were also awaiting Friday’s U.S. nonfarm payrolls report, amid speculation that the Federal Reserve could implement a third round of quantitative easing to shore up the economy, after June’s data disappointed market expectations.
The euro edged higher against the pound, with EUR/GBP inching up 0.11% to 0.8044, but remained weaker against the yen, with EUR/JPY down 0.37% to trade at 100.21.
Also Wednesday, official data showed that retail sales in the euro zone rose by a seasonally adjusted 0.6% in May, beating expectations for a 0.3% gain, but total sales for April were revised down to a 1.4% drop from a previously reported decline of 1%.