Investing.com - The euro was trading in a tight range against its major counterparts on Wednesday, amid speculation that the Federal Reserve will adopt more easing measures following its policy meeting later in the day.
During European late morning trade, the euro was fractionally higher against the U.S. dollar, with EUR/USD ticking up 0.03% to trade at 1.2688.
The euro remained supported ahead of the outcome of the Fed’s policy setting meeting, amid talk that the U.S. central bank may implement a third round of quantitative easing measures after a recent string of disappointing U.S. economic data.
Sentiment on the euro was also helped by indications that Greek political leaders may be moving closer to forming a coalition government.
Meanwhile, the yield on Spanish 10-year bonds eased back to 6.90% after climbing to euro-era highs earlier in the week, amid fears that Madrid will be forced to seek a full-fledged international bailout.
The single currency was fractionally higher against the pound, with EUR/GBP inching up 0.07% to trade at 0.8071.
The pound initially weakened after the Bank of England’s June minutes showed that four policymakers, including central bank governor Mervyn King, voted in favor of approving another round of quantitative easing this month, while five voted against.
Date on Tuesday showing an unexpected decline in U.K. consumer price inflation in May had fuelled expectations for more easing from the BoE, as until now inflation has been easing more slowly than the bank had hoped.
Meanwhile, official data showed that the number of people claiming unemployment benefits in the U.K. rose to 8,100 in May, defying expectations for a decline of 3,000.
The U.K. unemployment rate held steady at 8.2%, in line with expectations.
The shared currency was little changed against the yen and the Swiss franc, with EUR/JPY inching up 0.01% to trade at 100.16 and EUR/CHF dipping 0.01% to hit 1.2008.
In Switzerland, a report showed that investor sentiment plunged to its lowest level in five months in June, amid worries over the ongoing sovereign debt crisis in the euro zone.
The Centre for European Economic Research (ZEW) said its indicator of Swiss economic sentiment tumbled to minus 43.4 in June from a reading of minus 4.0 the previous month. Analysts had forecast a reading of minus 15.0.
The euro was mixed against the Canadian, Australian and New Zealand dollars, with EUR/CAD inching up 0.05% to hit 1.2915, EUR/AUD dipping 0.03% to hit 1.2447 and EUR/NZD gaining 0.16% to hit 1.5915.
Earlier Wednesday, official data showed that New Zealand’s current account deficit widened to NZD2.8 billion in the first quarter, against expectations for a deficit of NZD1.1 billion as dairy export prices and oil exports fell and the nation imported more fuel.
The Federal Reserve’s policy announcement was to be followed by a closely watched press conference with Fed Chairman Ben Bernanke, to discuss the bank’s decision.
During European late morning trade, the euro was fractionally higher against the U.S. dollar, with EUR/USD ticking up 0.03% to trade at 1.2688.
The euro remained supported ahead of the outcome of the Fed’s policy setting meeting, amid talk that the U.S. central bank may implement a third round of quantitative easing measures after a recent string of disappointing U.S. economic data.
Sentiment on the euro was also helped by indications that Greek political leaders may be moving closer to forming a coalition government.
Meanwhile, the yield on Spanish 10-year bonds eased back to 6.90% after climbing to euro-era highs earlier in the week, amid fears that Madrid will be forced to seek a full-fledged international bailout.
The single currency was fractionally higher against the pound, with EUR/GBP inching up 0.07% to trade at 0.8071.
The pound initially weakened after the Bank of England’s June minutes showed that four policymakers, including central bank governor Mervyn King, voted in favor of approving another round of quantitative easing this month, while five voted against.
Date on Tuesday showing an unexpected decline in U.K. consumer price inflation in May had fuelled expectations for more easing from the BoE, as until now inflation has been easing more slowly than the bank had hoped.
Meanwhile, official data showed that the number of people claiming unemployment benefits in the U.K. rose to 8,100 in May, defying expectations for a decline of 3,000.
The U.K. unemployment rate held steady at 8.2%, in line with expectations.
The shared currency was little changed against the yen and the Swiss franc, with EUR/JPY inching up 0.01% to trade at 100.16 and EUR/CHF dipping 0.01% to hit 1.2008.
In Switzerland, a report showed that investor sentiment plunged to its lowest level in five months in June, amid worries over the ongoing sovereign debt crisis in the euro zone.
The Centre for European Economic Research (ZEW) said its indicator of Swiss economic sentiment tumbled to minus 43.4 in June from a reading of minus 4.0 the previous month. Analysts had forecast a reading of minus 15.0.
The euro was mixed against the Canadian, Australian and New Zealand dollars, with EUR/CAD inching up 0.05% to hit 1.2915, EUR/AUD dipping 0.03% to hit 1.2447 and EUR/NZD gaining 0.16% to hit 1.5915.
Earlier Wednesday, official data showed that New Zealand’s current account deficit widened to NZD2.8 billion in the first quarter, against expectations for a deficit of NZD1.1 billion as dairy export prices and oil exports fell and the nation imported more fuel.
The Federal Reserve’s policy announcement was to be followed by a closely watched press conference with Fed Chairman Ben Bernanke, to discuss the bank’s decision.