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Forex - EUR/USD edges lower after Fed, focus turns to ECB

Published 08/01/2013, 02:26 AM
EUR/USD
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EUR/GBP
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Investing.com - The euro edged lower against the U.S. dollar on Thursday, after the Federal Reserve gave no indications on whether it will soon begin to taper its stimulus program, while markets eyed the European Central Bank's policy statement later in the day.

EUR/USD hit 1.3266 during late Asian trade, the session low; the pair subsequently consolidated at 1.3273, shedding 0.22%.

The pair was likely to find support at 1.3166, the low of July 25 and resistance at 1.3416, the high of June 19 and a four-month high.

At the end of its two-day policy meeting on Wednesday, the Fed said it would keep buying USD85 billion a month in mortgage and Treasury securities and added that the pace of economic growth is "modest".

However, speculation that the central bank could begin to scale back its stimulus program as soon as September persisted in light of recent U.S. economic reports. Investors were also eyeing the release of U.S. employment data on Friday.

Meanwhile, sentiment on the euro remained fragile ahead of the ECB's upcoming policy statement, as well as ECB President Mario Draghi's traditional press conference.

The euro was higher against the pound with EUR/GBP adding 0.10%, to hit 0.8754.

Later in the day, reports were to be released on manufacturing activity in Spain, Italy and the entire euro zone.

The U.S. was to publish official data on weekly unemployment claims, followed by a report by the Institute of Supply Management on manufacturing activity.


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