Investing.com - The euro edged lower against the dollar on Friday after investors sought safety in the liquid greenback over fears upcoming fiscal debates in the U.S.
In U.S. trading on Thursday, EUR/USD was down 0.06% at 1.3522, up from a session low of 1.3499 and off from a high of 1.3549.
The pair was likely to find support at 1.3325, Tuesday's low, and resistance at 1.3568, Thursday's.
In the U.S. earlier, the House of Representatives gave the green light to legislation to fund government through Dec. 15, however, lawmakers also passed a bill that would defund President Barack Obama's healthcare bill, the Affordable Care Act.
While the bill faces little chance of survival in the Senate, not to mention a presidential veto, the posturing sparked fears brinkmanship and inaction that sent investors seeking safety in the dollar ahead of a fiscal showdown brewing in the U.S.
Failure to agree on a solution could result in a government shutdown in October.
Separately, the greenback found some support after St. Louis Fed President James Bullard said earlier Friday that the U.S. central bank could taper its stimulus program during its October meeting.
The Federal Reserve on Wednesday concluded a two-day monetary policy meeting and made no changes to its USD85 billion bond-buying program, which weakens the dollar to spur recovery.
Many market participants were expecting the U.S. central bank to trim the total by USD10 billion or more now that the economy is gaining steam, though the Fed said it wanted to see more evidence that recovery will be sustained before adjusting the pace of its purchases.
Meanwhile in the euro zone, investors braced for the outcome of Germany's general election on Sunday, with Chancellor Angela Merkel looking to secure a third term.
Elsewhere, the euro was flat against the pound and down against the yen, with EUR/GBP trading down 0.01% at 0.8440 and EUR/JPY trading down 0.15% at 134.35.
In U.S. trading on Thursday, EUR/USD was down 0.06% at 1.3522, up from a session low of 1.3499 and off from a high of 1.3549.
The pair was likely to find support at 1.3325, Tuesday's low, and resistance at 1.3568, Thursday's.
In the U.S. earlier, the House of Representatives gave the green light to legislation to fund government through Dec. 15, however, lawmakers also passed a bill that would defund President Barack Obama's healthcare bill, the Affordable Care Act.
While the bill faces little chance of survival in the Senate, not to mention a presidential veto, the posturing sparked fears brinkmanship and inaction that sent investors seeking safety in the dollar ahead of a fiscal showdown brewing in the U.S.
Failure to agree on a solution could result in a government shutdown in October.
Separately, the greenback found some support after St. Louis Fed President James Bullard said earlier Friday that the U.S. central bank could taper its stimulus program during its October meeting.
The Federal Reserve on Wednesday concluded a two-day monetary policy meeting and made no changes to its USD85 billion bond-buying program, which weakens the dollar to spur recovery.
Many market participants were expecting the U.S. central bank to trim the total by USD10 billion or more now that the economy is gaining steam, though the Fed said it wanted to see more evidence that recovery will be sustained before adjusting the pace of its purchases.
Meanwhile in the euro zone, investors braced for the outcome of Germany's general election on Sunday, with Chancellor Angela Merkel looking to secure a third term.
Elsewhere, the euro was flat against the pound and down against the yen, with EUR/GBP trading down 0.01% at 0.8440 and EUR/JPY trading down 0.15% at 134.35.