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Forex - Euro steady against dollar in subdued trade

Published 08/27/2012, 08:07 AM
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Investing.com - The euro was steady against the U.S. dollar in quiet trade on Monday, brushing off weak German business sentiment data, as investors awaited a speech by Federal Reserve Chairman Ben Bernanke in Jackson Hole later in the week.

EUR/USD hit 1.2534 during European afternoon trade, the session high; the pair subsequently consolidated at 1.2525, easing up 0.11%.

The pair was likely to find support at 1.2430, the low of August 22 and resistance at 1.2588, last Thursday’s high and a seven-week high.

Investors were anticipating a speech by Fed chief Ben Bernanke at an annual symposium in Jackson Hole, Wyoming on Friday, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.

Earlier Monday, data showed that German business sentiment declined for a fourth successive month in August, underlining concerns over the impact of the debt crisis on the region’s largest economy.

The German research institute Ifo said its Business Climate Index came in at 102.3 this month, from a downwardly revised 103.2 in July, compared to expectations for a reading of 102.6.

However, the current assessment index fell less-than-expected, ticking down to 111.2 from 111.6 last month, slightly better that expectations for a reading of 110.8.

Sentiment on the euro continued to be supported by expectations that the European Central Bank will implement policy measures to help stabilize the euro zone's sovereign debt markets at its next policy meeting in early September.

The euro was slightly higher against the pound and the yen, with EUR/GBP easing up 0.09% to 0.7921 and EUR/JPY rising 0.18% to 98.59.

Trade volumes were expected to remain light on Monday, with markets in the U.K. closed for a bank holiday weekend.


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