Investing.com - The euro was trading close to a one-month low against the U.S. dollar on Wednesday, as market participants trimmed expectations for a third round of U.S. monetary easing by the Federal Reserve.
EUR/USD hit 1.3031 during late Asian trade, the pair’s lowest since February 16; the pair subsequently consolidated at 1.3042, shedding 0.31%.
The pair was likely to find support at 1.2974, the low of February 16 and resistance at 1.3089, the session high.
In its rate statement on Tuesday, the Federal Reserve said it expects “moderate economic growth” and acknowledged the recent improvement in the labor market, saying it expected the unemployment rate to “decline gradually.”
However, policymakers reiterated their intention to keep the benchmark interest rate unchanged at a record low through late 2014 and warned that risks to the economic recovery still remained.
The dollar had risen broadly on Tuesday, after official data showed that U.S. retail sales rose to a five-month high of 1.1% in February, after data last week showed that the U.S. economy added more jobs than forecast last month.
The euro was slightly lower against the pound and the yen, with EUR/GBP slipping 0.07% to hit 0.8324 and EUR/JPY losing 0.08% to hit 108.42.
Later in the day, the euro zone was to publish official data on consumer price inflation, as well as data on industrial production.
The U.S. was to produce official data on the country’s current account, as well as data on import prices and crude oil stockpiles. In addition, Federal Reserve Chairman Ben Bernanke was due to speak; his comments would be closely watched for clues to the future possible direction of monetary policy.
EUR/USD hit 1.3031 during late Asian trade, the pair’s lowest since February 16; the pair subsequently consolidated at 1.3042, shedding 0.31%.
The pair was likely to find support at 1.2974, the low of February 16 and resistance at 1.3089, the session high.
In its rate statement on Tuesday, the Federal Reserve said it expects “moderate economic growth” and acknowledged the recent improvement in the labor market, saying it expected the unemployment rate to “decline gradually.”
However, policymakers reiterated their intention to keep the benchmark interest rate unchanged at a record low through late 2014 and warned that risks to the economic recovery still remained.
The dollar had risen broadly on Tuesday, after official data showed that U.S. retail sales rose to a five-month high of 1.1% in February, after data last week showed that the U.S. economy added more jobs than forecast last month.
The euro was slightly lower against the pound and the yen, with EUR/GBP slipping 0.07% to hit 0.8324 and EUR/JPY losing 0.08% to hit 108.42.
Later in the day, the euro zone was to publish official data on consumer price inflation, as well as data on industrial production.
The U.S. was to produce official data on the country’s current account, as well as data on import prices and crude oil stockpiles. In addition, Federal Reserve Chairman Ben Bernanke was due to speak; his comments would be closely watched for clues to the future possible direction of monetary policy.