Forex – EUR/USD edges lower after U.S. mid-terms, pre-Fed

Published 11/03/2010, 03:37 AM
EUR/USD
-
EUR/GBP
-
Investing.com – The euro eased down against the U.S. dollar on Wednesday, falling to a daily low after the Republican Party made strong inroads in U.S. mid-term elections and ahead of a critical Federal Reserve announcement.

EUR/USD hit 1.3992 during late Asian trade, a daily low; the pair subsequently consolidated at 1.4019, shedding 0.10%.

The pair was likely to find support at 1.3881, Tuesday’s low and resistance at 1.4157, the high of October 15.

Earlier in the day, partial results and exit polls from the U.S. mid-term elections indicated that Republicans swept to power in the House of Representatives and ate into the Democratic majority in the Senate.

The political deadlock was likely to result in checks on government spending and regulation and was being viewed as beneficial to the energy and auto sector as well as  financial services firms.

Meanwhile, the euro was up against the pound, with EUR/GBP rising 0.04% to hit 0.8751.

Later in the day, the U.S. Federal Reserve was to make its November rate statement. The announcement was widely expected to unveil a fresh round of Treasury bond purchases designed to support the U.S. economic recovery.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.