Investing.com - The euro extended losses against the U.S. dollar on Wednesday, after U.S. data painted a mixed picture of the economy, stoking expectations for another round of quantitative easing from the Federal Reserve.
EUR/USD hit 1.2264 during U.S. morning trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.2266, shedding 0.45%.
The pair was likely to find near-term support at 1.2240, the low of August 10 and resistance at 1.2342, the session high.
Official data showed that consumer price inflation in the U.S. was flat in July for the second successive month, compared to expectations for a 0.2% increase.
Core consumer prices, which exclude food and energy prices, rose 0.1%, less than the expected 0.2% increase, following a 0.2% rise in June.
Meanwhile, the New York Federal Reserve’s index of manufacturing conditions deteriorated significantly more-than-expected this month, contracting for the first time since October 2011.
The Federal Reserve Bank of New York said that its general business conditions index came in at minus 5.8 in August, down sharply from a reading of 7.4 in July. Analysts had expected the index fall to 6.5 in August.
Another report showed that industrial production in the U.S. rose slightly more-than-expected in July, climbing 0.6%, just above expectations for a 0.5% increase.
The euro was lower against the pound and the yen, with EUR/GBP down 0.41% to 0.7827 and EUR/JPY sliding 0.34% to 96.68.
The euro remained under pressure amid concerns over the economic outlook for the euro zone after data on Tuesday showed that the bloc’s economy contracted 0.2% in the second quarter.
Meanwhile, hopes that the European Central Bank will soon move to stem the debt crisis in the euro zone faded, as investors waited for more details of the bank’s proposed bond buying program to emerge.
EUR/USD hit 1.2264 during U.S. morning trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.2266, shedding 0.45%.
The pair was likely to find near-term support at 1.2240, the low of August 10 and resistance at 1.2342, the session high.
Official data showed that consumer price inflation in the U.S. was flat in July for the second successive month, compared to expectations for a 0.2% increase.
Core consumer prices, which exclude food and energy prices, rose 0.1%, less than the expected 0.2% increase, following a 0.2% rise in June.
Meanwhile, the New York Federal Reserve’s index of manufacturing conditions deteriorated significantly more-than-expected this month, contracting for the first time since October 2011.
The Federal Reserve Bank of New York said that its general business conditions index came in at minus 5.8 in August, down sharply from a reading of 7.4 in July. Analysts had expected the index fall to 6.5 in August.
Another report showed that industrial production in the U.S. rose slightly more-than-expected in July, climbing 0.6%, just above expectations for a 0.5% increase.
The euro was lower against the pound and the yen, with EUR/GBP down 0.41% to 0.7827 and EUR/JPY sliding 0.34% to 96.68.
The euro remained under pressure amid concerns over the economic outlook for the euro zone after data on Tuesday showed that the bloc’s economy contracted 0.2% in the second quarter.
Meanwhile, hopes that the European Central Bank will soon move to stem the debt crisis in the euro zone faded, as investors waited for more details of the bank’s proposed bond buying program to emerge.