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EUR/USD dips on ECB comments, trims earlier losses

Published 03/11/2014, 12:13 PM
Updated 03/11/2014, 12:15 PM
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Investing.com - The euro dipped against the dollar on Tuesday after European Central Bank Vice President Vitor Constancio said markets missed parts of the monetary authority's message on forward guidance last week, though bottom fishing trimmed earlier losses.

In U.S. trading, EUR/USD was trading at 1.3868, down 0.06%, up from a session low of 1.3834 and off a high of 1.3879.

The pair was likely to find support at 1.3707, last Wednesday's low, and resistance at 1.3915, Friday's high.

The ECB left monetary policy on hold at last Thursday’s meeting, and refrained from implementing any new measures to shore up growth, despite forecasting below target inflation for the next few years.

The euro slide after Constancio said earlier that slack still remains in the euro zone economy, though markets missed the message in the ECB's monetary policy statement.

"The forward guidance was made more precise in relation to the existence of this slack. Unfortunately ... this was not picked up by the markets," he said.

He also said the central bank still had policy options available, including lower interest rates or quantitative easing, if necessary.

A lack of major economic indicators in the U.S. allowed for subdued trading.

The euro was flat against the pound, with EUR/GBP up 0.01% to 0.8336, and down against the yen, with EUR/JPY slipping 0.09% and trading at 143.17.

On Wednesday, the euro zone is to release data on industrial production.

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