Investing.com – The euro eased off a four-day low against the U.S. dollar on Wednesday, ahead of the European Central Bank’s policy meeting but gains were limited after ratings agency Moody’s downgraded Portugal’s sovereign debt rating to junk status.
EUR/USD hit 1.4467 during late Asian trade, the daily high; the pair subsequently consolidated at 1.4455, gaining 0.18%.
The pair was likely to find short-support at 1.4394, Tuesday’s low and a four-day low and resistance at 1.4577, Monday’s high and an almost one-month high.
On Tuesday, Moody's downgraded Portugal's credit rating by four notches to Ba2, saying there is great risk the country will need a second round of official financing before it can return to capital markets.
The single currency was supported by expectations that the European Central Bank will raise interest rates again at its monthly policy meeting on Thursday, after ECB President Jean-Claude Trichet said last week that the bank was in “strong vigilance mode.”
The euro was also higher against the pound, with EUR/GBP rising 0.20% to hit 0.9003.
Later in the day, the euro zone was to publish final data on first quarter gross domestic product, while Germany was to publish official data on factory orders. Also Wednesday, the U.S. Institute of Supply Management was to publish a report on service sector growth.
EUR/USD hit 1.4467 during late Asian trade, the daily high; the pair subsequently consolidated at 1.4455, gaining 0.18%.
The pair was likely to find short-support at 1.4394, Tuesday’s low and a four-day low and resistance at 1.4577, Monday’s high and an almost one-month high.
On Tuesday, Moody's downgraded Portugal's credit rating by four notches to Ba2, saying there is great risk the country will need a second round of official financing before it can return to capital markets.
The single currency was supported by expectations that the European Central Bank will raise interest rates again at its monthly policy meeting on Thursday, after ECB President Jean-Claude Trichet said last week that the bank was in “strong vigilance mode.”
The euro was also higher against the pound, with EUR/GBP rising 0.20% to hit 0.9003.
Later in the day, the euro zone was to publish final data on first quarter gross domestic product, while Germany was to publish official data on factory orders. Also Wednesday, the U.S. Institute of Supply Management was to publish a report on service sector growth.