Euro rangebound as markets await central bank moves

Published 08/29/2012, 06:47 AM
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Investing.com - The euro was moving in a tight range against the other major currencies on Wednesday, as investors awaited more details of European Central Bank plans to stem the debt crisis in the region and a speech by Federal Reserve Chairman Ben Bernanke on Friday.

During European late morning trade, the euro was hovering close to a seven-week high against the U.S. dollar, with EUR/USD dipping 0.08% to 1.2555.

Demand for the single currency continued to be underpinned by expectations that the ECB is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.

Earlier Wednesday, Italy saw borrowing costs decline to the lowest level since March at an auction of six-month government bonds which attracted solid investor demand.

Meanwhile, investors were anticipating a speech by the Federal Reserve chairman 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.

The single currency was trading close to a three-week high against the pound, with EUR/GBP inching down 0.07% to 0.7936.

The outlook for sterling remained fragile as concerns over broad economic weakness kept alive expectations for another round of monetary easing by the Bank of England.

The euro was little changed close to a six-week high against the yen, with EUR/JPY edging up 0.01% to 98.64, and remained steady against the Swiss franc, with EUR/CHF dipping 0.01% to 1.2009.

The shared currency remained supported against the Australian, Canadian and New Zealand dollars, with EUR/AUD inching up 0.06% to 1.2116, EUR/CAD easing up 0.01% to trade at 1.2418 and EUR/NZD climbing 0.20% to 1.5644.

Later in the day, the U.S. was to release revised data on second quarter economic growth, as well as industry data on pending home sales.



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