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Forex - EUR/USD steady, eyes on ECB, Fed comments

Published 04/25/2012, 01:21 AM
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Investing.com - The euro was steady against the U.S. dollar on Wednesday, as investors eyed a speech by European Central Bank President Mario Draghi and a statement from the Federal Reserve later in the day, while concerns over the euro zone’s debt crisis remained.

EUR/USD hit 1.3207 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3196, inching up 0.01%.

The pair was likely to find support at 1.3171, the low of March 20 and resistance at 1.3238, the high of April 4.

Investors were relieved when a successful auction sent yields on Dutch debt lower on Tuesday, a day after the government in the Netherlands collapsed in a crisis over budget cuts.

However, an auction of Spanish short term government debt saw the country’s borrowing costs almost double, while Italy’s borrowing costs rose to the highest level since January after an auction of government bills.

Markets were also jittery as a string of mixed U.S. data on Tuesday failed to paint a clear picture of the level of recovery of the world’s largest economy.

The Conference Board said that its index of U.S. consumer confidence dipped unexpectedly to 69.2 in April from a reading of 69.5 in March, while a separate report showed that new home sales in the U.S. fell to 328,000 units in March, compared to expectations for a decline to 320,000.

The data came after a report showing that the S&P/Case-Shiller home price index fell more-than-expected in February, declining for the 20th consecutive month as U.S. home prices fell to the lowest level since 2002.

Elsewhere, the euro was also steady against the pound with EUR/GBP edging 0.01% higher, to hit 0.8174.

Later in the day, ECB President Draghi was to testify before the European Parliament's Economic and Monetary Committee, in Brussels.

In the U.S., government data was to be released on durable goods orders and crude oil stockpiles. The Federal Reserve was to announce its benchmark interest rate and release its rate statement.


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