Investing.com - The euro fell to a three-day low against the U.S. dollar on Wednesday, but remained supported ahead of the European Central Bank’s policy meeting on Thursday, amid hopes the bank will take new steps to stem the debt crisis in the euro zone.
EUR/USD hit 1.2517 during late Asian trade, the pair’s lowest since August 31; the pair subsequently consolidated at 1.2521, shedding 0.36%.
The pair was likely to find support at 1.2430, the low of August 22 and resistance at 1.2627, Tuesday’s high.
Investors eyed the ECB’s monetary policy meeting on Thursday, amid expectations that the bank will give further the details on a long awaited bond-buying program designed to help ease funding pressures for indebted euro zone countries.
ECB President Mario Draghi told European lawmakers on Monday that purchases of short-term sovereign bonds to help debt-burdened countries like Spain and Italy would not breach European Union rules.
The single currency remained under pressure however, amid growing fears that the central bank may disappoint.
Meanwhile, the greenback’s gains were limited after disappointing U.S. manufacturing data on Tuesday added to speculation that the Federal Reserve may soon announce a fresh round of easing measures to shore up growth.
The Institute for Supply Management said its index of purchasing managers fell by 0.2 points to 49.6 in August from a reading of 49.8 in July. Analysts had expected the ISM index of purchasing managers to ease up by 0.2 points to 50.0.
The euro was also lower against the pound with EUR/GBP falling 0.23%, to hit 0.7898.
Later in the day, the euro zone was to publish official data on retail sales, while the U.S. was to produce revised data on nonfarm productivity.
EUR/USD hit 1.2517 during late Asian trade, the pair’s lowest since August 31; the pair subsequently consolidated at 1.2521, shedding 0.36%.
The pair was likely to find support at 1.2430, the low of August 22 and resistance at 1.2627, Tuesday’s high.
Investors eyed the ECB’s monetary policy meeting on Thursday, amid expectations that the bank will give further the details on a long awaited bond-buying program designed to help ease funding pressures for indebted euro zone countries.
ECB President Mario Draghi told European lawmakers on Monday that purchases of short-term sovereign bonds to help debt-burdened countries like Spain and Italy would not breach European Union rules.
The single currency remained under pressure however, amid growing fears that the central bank may disappoint.
Meanwhile, the greenback’s gains were limited after disappointing U.S. manufacturing data on Tuesday added to speculation that the Federal Reserve may soon announce a fresh round of easing measures to shore up growth.
The Institute for Supply Management said its index of purchasing managers fell by 0.2 points to 49.6 in August from a reading of 49.8 in July. Analysts had expected the ISM index of purchasing managers to ease up by 0.2 points to 50.0.
The euro was also lower against the pound with EUR/GBP falling 0.23%, to hit 0.7898.
Later in the day, the euro zone was to publish official data on retail sales, while the U.S. was to produce revised data on nonfarm productivity.