Forex - EUR/USD edges lower with focus on Bernanke

Published 07/16/2012, 02:27 AM
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Investing.com - The euro edged lower against the U.S. dollar on Monday, as market participants looked ahead to testimony by Federal Reserve Chairman Ben Bernanke, amid speculation over the possibility of more easing from the U.S. central bank.

EUR/USD hit 1.2229 during late Asian trade, the session low; the pair subsequently consolidated at 1.2230, slipping 0.15%.

The pair was likely to find support at 1.2161, Friday’s low and a two-year trough and near-term resistance at 1.2296, the high of July 11.

Investors remained cautious ahead of Bernanke's testimony before the Senate on Tuesday and Wednesday, while trade volumes remained light, with markets in Japan closed for a national holiday.

In June, Bernanke said the Fed remained prepared to take additional steps to support economic growth if necessary, including additional asset purchases.

The euro slipped lower against the pound and the yen, with EUR/GBP losing 0.08% to trade at 0.7856 and EUR/JPY down 0.25% to 96.73.

Later in the day, the euro zone was to produce official data on consumer price inflation.

The U.S. was to publish official data on retail sales and business inventories, as well as a report on manufacturing activity in New York.


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