Investing.com - The euro edged lower against the dollar on Thursday as markets digested the Federal Reserve's decision to cut its USD85 billion in monthly bond purchases by USD10 billion beginning January, which could open the door to a longer-term strengthening trend for the greenback.
Lackluster economic indicators out the U.S. capped the greenback's gains.
In U.S. trading on Thursday, EUR/USD was down 0.14% at 1.3667, up from a session low of 1.3650 and off from a high of 1.3812.
The pair was likely to find support at 1.3524, the low from Dec. 3, and resistance at 1.3812, the earlier high.
On Wednesday, the Fed announced that it would reduce its USD85 billion-a-month bond-buying program by USD10 billion in January, while outgoing Fed Chairman Ben Bernanke said the economy was continuing to improve.
Fed bond purchases tend to weaken the dollar by driving down long-term interest rates that send investors to assets like stocks to encourage investing and hiring.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
Meanwhile, less-than-stellar economic indicators in the U.S. watered down the greenback's gains.
The Federal Reserve Bank of Philadelphia said that its manufacturing index jumped to 7.0 for December from November’s 6.5 reading, though analysts were expecting the index to rise to 10.0 this month.
A separate report showed that U.S. existing home sales declined 4.3% to a seasonally adjusted 4.90 million units in November from 5.12 million in October. Analysts were expecting U.S. existing home sales to fall 1.5% to 5.03 million units last month.
Also on Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending Dec. 14 increased by 10,000 to a seasonally adjusted 379,000, the highest level since March.
Analysts were expecting U.S. jobless claims to fall to 334,000 last week from the previous week’s revised total of 369,000.
The single currency was flat against the pound and down against the yen, with EUR/GBP trading up 0.01% at 0.8352 and EUR/JPY trading down 0.24% at 142.37.
On Friday, Germany is to release data on producer price inflation, as well as private sector data on consumer climate.
The U.S. is to round up the week with revised data on third-quarter GDP.
Lackluster economic indicators out the U.S. capped the greenback's gains.
In U.S. trading on Thursday, EUR/USD was down 0.14% at 1.3667, up from a session low of 1.3650 and off from a high of 1.3812.
The pair was likely to find support at 1.3524, the low from Dec. 3, and resistance at 1.3812, the earlier high.
On Wednesday, the Fed announced that it would reduce its USD85 billion-a-month bond-buying program by USD10 billion in January, while outgoing Fed Chairman Ben Bernanke said the economy was continuing to improve.
Fed bond purchases tend to weaken the dollar by driving down long-term interest rates that send investors to assets like stocks to encourage investing and hiring.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
Meanwhile, less-than-stellar economic indicators in the U.S. watered down the greenback's gains.
The Federal Reserve Bank of Philadelphia said that its manufacturing index jumped to 7.0 for December from November’s 6.5 reading, though analysts were expecting the index to rise to 10.0 this month.
A separate report showed that U.S. existing home sales declined 4.3% to a seasonally adjusted 4.90 million units in November from 5.12 million in October. Analysts were expecting U.S. existing home sales to fall 1.5% to 5.03 million units last month.
Also on Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending Dec. 14 increased by 10,000 to a seasonally adjusted 379,000, the highest level since March.
Analysts were expecting U.S. jobless claims to fall to 334,000 last week from the previous week’s revised total of 369,000.
The single currency was flat against the pound and down against the yen, with EUR/GBP trading up 0.01% at 0.8352 and EUR/JPY trading down 0.24% at 142.37.
On Friday, Germany is to release data on producer price inflation, as well as private sector data on consumer climate.
The U.S. is to round up the week with revised data on third-quarter GDP.