Investing.com – The euro slipped from a 14-month high against the U.S. dollar on Thursday, as concerns over the euro zone’s sovereign debt crisis overshadowed expectations for a rate increase by the European Central Bank later in the day.
EUR/USD hit 1.4296 during late Asian trade, the daily low; the pair subsequently consolidated at 1.4297, shedding 0.23%.
The pair was likely to find support at 1.4207, Wednesday’s low and resistance at 1.4348, Wednesday’s high and a 14-month high.
The single currency came under pressure after Portugal became the third euro zone member to seek a bailout from the European Union, with the size of the package expected to be as much as EUR80 billion, after the country paid almost 6% to borrow for 12 months in a government bond auction on Wednesday.
But the currency remained well supported by widespread expectations that the ECB would hike interest rates later Thursday, lifting its key lending rate to 1.25% from a record low of 1.0%.
Meanwhile, the euro was higher against the pound, with EUR/GBP easing up 0.06% to hit 0.8781.
Later in the day, the ECB was to announce its minimum bid rate. The announcement was to be followed by a closely watched press conference. Also Thursday, the U.S. was to publish a weekly report on initial jobless claims.
EUR/USD hit 1.4296 during late Asian trade, the daily low; the pair subsequently consolidated at 1.4297, shedding 0.23%.
The pair was likely to find support at 1.4207, Wednesday’s low and resistance at 1.4348, Wednesday’s high and a 14-month high.
The single currency came under pressure after Portugal became the third euro zone member to seek a bailout from the European Union, with the size of the package expected to be as much as EUR80 billion, after the country paid almost 6% to borrow for 12 months in a government bond auction on Wednesday.
But the currency remained well supported by widespread expectations that the ECB would hike interest rates later Thursday, lifting its key lending rate to 1.25% from a record low of 1.0%.
Meanwhile, the euro was higher against the pound, with EUR/GBP easing up 0.06% to hit 0.8781.
Later in the day, the ECB was to announce its minimum bid rate. The announcement was to be followed by a closely watched press conference. Also Thursday, the U.S. was to publish a weekly report on initial jobless claims.