Investing.com - The euro extended losses against the dollar on Wednesday amid worries over whether the European Central Bank would indicate concerns about the euro’s recent gains at the conclusion of Thursday’s policy setting meeting.
EUR/USD hit 1.3414 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3516, shedding 0.49%.
The pair was likely to find support at 1.3457, Tuesday’s low and resistance at 1.3592, the session high.
Sentiment on the single currency weakened amid fears that ECB President Mario Draghi would offer any indication that policymakers were concerned over the impact of the stronger euro on the region’s economic recovery.
The ECB was widely expected to keep rates on hold at 0.75% on Thursday.
The euro showed little reaction after official data earlier showed that German factory orders rose 0.8% in December, slightly below expectations for a 0.9% increase.
Elsewhere, the single currency was lower against the pound, with EUR/GBP sliding 0.44% to 0.8634. The euro also eased against the yen but remained supported close to 33-month highs, with EUR/JPY down 0.42% to 126.63.
The yen came under renewed selling pressure after Bank of Japan Governor Masaaki Shirakawa said Tuesday that he was stepping down three weeks before the conclusion of his five year term on April 8, along with his two deputy governors.
The move is likely to push forward a transition towards more aggressive monetary easing, amid ongoing pressure from Prime Minister Shinzo Abe to step up measures to combat deflation.
EUR/USD hit 1.3414 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3516, shedding 0.49%.
The pair was likely to find support at 1.3457, Tuesday’s low and resistance at 1.3592, the session high.
Sentiment on the single currency weakened amid fears that ECB President Mario Draghi would offer any indication that policymakers were concerned over the impact of the stronger euro on the region’s economic recovery.
The ECB was widely expected to keep rates on hold at 0.75% on Thursday.
The euro showed little reaction after official data earlier showed that German factory orders rose 0.8% in December, slightly below expectations for a 0.9% increase.
Elsewhere, the single currency was lower against the pound, with EUR/GBP sliding 0.44% to 0.8634. The euro also eased against the yen but remained supported close to 33-month highs, with EUR/JPY down 0.42% to 126.63.
The yen came under renewed selling pressure after Bank of Japan Governor Masaaki Shirakawa said Tuesday that he was stepping down three weeks before the conclusion of his five year term on April 8, along with his two deputy governors.
The move is likely to push forward a transition towards more aggressive monetary easing, amid ongoing pressure from Prime Minister Shinzo Abe to step up measures to combat deflation.