Investing.com - The euro cooled its rally against the dollar early Thursday, taking a breather after shooting up on reports the European Central Bank is set to unveil plans to buy an unlimited amount of sovereign bonds to lower borrowing costs in countries like Italy and Spain.
In Asian trading on Thursday, EUR/USD was trading down 0.01% at 1.2598, up from a low of 1.2597 and off from a high of 1.2601.
The pair was likely to find support at 1.2561, Monday's low, and resistance at 1.2628, Tuesday's high.
Bloomberg reported earlier that the ECB was planning "unlimited, sterilized" bond purchases, without setting bond yield targets.
The plan, known as the Monetary Outright Transaction proposal, will involve purchases of government bonds carrying maturities of up to three years.
The news sent the euro gaining against the dollar though the single currency later cooled its rally, as investors jumped to the sidelines to await the official announcement and details.
Also in Europe, eurozone retail sales contracted although in line with expectations, dropping 0.2% in July and bringing the annualized rate of decline to 1.7%.
Elsewhere in the U.S., the Bureau of Labor Statistics reported earlier that non-farm business sector labor productivity rose by a seasonally adjusted 2.2% in the second quarter, outpacing expectations for a 1.8% gain and up from a preliminary estimate of a 1.6% increase.
The report also showed that unit labor costs rose by a seasonally adjusted 1.5% in the second quarter, in line with expectations and down from an initial estimate of a 1.7% increase.
The euro, meanwhile, was down against the pound and up against the yen, with EUR/GBP down 0.01% at 0.7924, and EUR/JPY trading up 0.03% at 98.80.
Later Thursday, the ECB will announce its benchmark interest rate and will also hold a a press conference with bank chief Mario Draghi, which will be closely watched for details of the bank’s bond purchasing program.
Elsewhere, Germany is to release a report on factory orders, a leading indicator of production.
In the U.S., the ADP report on non-farm employment change will publish followed by weekly government data on unemployment claims.
The country is also to release a report by the Institute for Supply Management on non-manufacturing activity, as well as official data on crude oil stockpiles.
In Asian trading on Thursday, EUR/USD was trading down 0.01% at 1.2598, up from a low of 1.2597 and off from a high of 1.2601.
The pair was likely to find support at 1.2561, Monday's low, and resistance at 1.2628, Tuesday's high.
Bloomberg reported earlier that the ECB was planning "unlimited, sterilized" bond purchases, without setting bond yield targets.
The plan, known as the Monetary Outright Transaction proposal, will involve purchases of government bonds carrying maturities of up to three years.
The news sent the euro gaining against the dollar though the single currency later cooled its rally, as investors jumped to the sidelines to await the official announcement and details.
Also in Europe, eurozone retail sales contracted although in line with expectations, dropping 0.2% in July and bringing the annualized rate of decline to 1.7%.
Elsewhere in the U.S., the Bureau of Labor Statistics reported earlier that non-farm business sector labor productivity rose by a seasonally adjusted 2.2% in the second quarter, outpacing expectations for a 1.8% gain and up from a preliminary estimate of a 1.6% increase.
The report also showed that unit labor costs rose by a seasonally adjusted 1.5% in the second quarter, in line with expectations and down from an initial estimate of a 1.7% increase.
The euro, meanwhile, was down against the pound and up against the yen, with EUR/GBP down 0.01% at 0.7924, and EUR/JPY trading up 0.03% at 98.80.
Later Thursday, the ECB will announce its benchmark interest rate and will also hold a a press conference with bank chief Mario Draghi, which will be closely watched for details of the bank’s bond purchasing program.
Elsewhere, Germany is to release a report on factory orders, a leading indicator of production.
In the U.S., the ADP report on non-farm employment change will publish followed by weekly government data on unemployment claims.
The country is also to release a report by the Institute for Supply Management on non-manufacturing activity, as well as official data on crude oil stockpiles.