Investing.com - The dollar slid against the euro on Wednesday after the Federal Reserve left interest rates unchanged near zero and said monetary stimulus tools will stay in place.
In U.S. trading on Wednesday, EUR/USD was up 0.35% at 1.3214, up from a session low of
1.3056 and off from a high of 1.3242.
The pair was likely to find support at 1.3056, the earlier low, and resistance at 1.3434, the high from Feb. 20.
Concerned about "downside risks" to recovery, especially fiscal uncertainty in the U.S., the Fed said stimulus tools currently in place will stay put, including the Fed's monthly USD85 billion bond-buying program, which weakens the greenback to encourage investing and job-demand.
Soft data out of the U.S. weakened the pair as well.
The Institute for Supply Management said earlier that its manufacturing purchasing managers’ index fell to 50.7 in April from 51.3 in March, worse than expectations for a 50.9 reading.
Payroll processor ADP said private-sector nonfarm payrolls rose by 119,000 in April, well below expectations for an increase of 150,000.
ADP's March figure was revised down to a gain of 131,000 from a previously reported increase of 158,000.
The European Central Bank will decide on its own decision on interest rates Thursday, though expectations for a rate cut have already priced into trading, which allowed the euro to flex its muscles against the greenback on sentiment that such a move will bolster the eurozone economy down the road.
The euro, meanwhile, was down against the pound and up against the yen, with EUR/GBP trading down 0.08% at 0.8470, and EUR/JPY trading up 0.20% at 128.53.
All eyes will focus on the European Central Bank on Thursday.
Elsewhere, Spain and Italy are to release data on manufacturing activity, while France is to hold an auction of 10-year government bonds.
The U.S. is to publish the weekly government report on initial jobless claims as well as official data on the trade balance.
In U.S. trading on Wednesday, EUR/USD was up 0.35% at 1.3214, up from a session low of
1.3056 and off from a high of 1.3242.
The pair was likely to find support at 1.3056, the earlier low, and resistance at 1.3434, the high from Feb. 20.
Concerned about "downside risks" to recovery, especially fiscal uncertainty in the U.S., the Fed said stimulus tools currently in place will stay put, including the Fed's monthly USD85 billion bond-buying program, which weakens the greenback to encourage investing and job-demand.
Soft data out of the U.S. weakened the pair as well.
The Institute for Supply Management said earlier that its manufacturing purchasing managers’ index fell to 50.7 in April from 51.3 in March, worse than expectations for a 50.9 reading.
Payroll processor ADP said private-sector nonfarm payrolls rose by 119,000 in April, well below expectations for an increase of 150,000.
ADP's March figure was revised down to a gain of 131,000 from a previously reported increase of 158,000.
The European Central Bank will decide on its own decision on interest rates Thursday, though expectations for a rate cut have already priced into trading, which allowed the euro to flex its muscles against the greenback on sentiment that such a move will bolster the eurozone economy down the road.
The euro, meanwhile, was down against the pound and up against the yen, with EUR/GBP trading down 0.08% at 0.8470, and EUR/JPY trading up 0.20% at 128.53.
All eyes will focus on the European Central Bank on Thursday.
Elsewhere, Spain and Italy are to release data on manufacturing activity, while France is to hold an auction of 10-year government bonds.
The U.S. is to publish the weekly government report on initial jobless claims as well as official data on the trade balance.