Investing.com - The dollar held steady to lower against the euro on Wednesday as markets digested news that U.S. lawmakers have struck a spending deal needed to reopen the government and avoid throwing the country into default.
The U.S. is due to hit its debt ceiling on Thursday, after which Washington won't be able to guarantee all of its obligations.
In U.S. trading on Wednesday, EUR/USD was up 0.05% at 1.3532, up from a session low of 1.3474 and off from a high of 1.3567.
The pair was likely to find support at 1.3462, the low from Sept. 25 , and resistance at 1.3598, Monday's high.
Senate Majority Leader Harry Reid, a Democrat, and the Senate's top Republican, Mitch McConnell, said they agreed on a plan to end the fiscal impasse needed to reopen the government as well as extend Washington's borrowing authority to avoid defaults.
The dollar saw support on expectations that the House of Representatives may give the proposal the green light possibly today, though it didn't soar as markets were expecting a last-minute compromise similar to the debt-ceiling debates of 2011 and the fiscal cliff deal in late 2012.
U.S. credit ratings agency Fitch Ratings on Tuesday placed the U.S. 'AAA' debt on "rating watch negative" due to congressional inability to pass a spending package.
The budget deal will reportedly give the Treasury the authority to continue borrowing through Feb. 7 and fund the government through Jan. 15, but will also add in spending cuts, which appeased Republicans.
Meanwhile in the euro zone, data released on Wednesday showed that the annual rate of consumer inflation in the euro zone was unchanged from a preliminary estimate of 1.1% in September.
A separate report showed that the euro zone’s trade surplus widened to EUR12.3 billion in August from EUR11 billion in April, broadly in line with forecasts.
Elsewhere, the euro was up against the pound and up against the yen, with EUR/GBP trading up 0.38% at 0.8487 and EUR/JPY trading up 0.68% at 133.68.
On Thursday, the U.S. is to publish the weekly government report on initial jobless claims, as well as data on manufacturing activity from the Philly Fed.
The U.S. is due to hit its debt ceiling on Thursday, after which Washington won't be able to guarantee all of its obligations.
In U.S. trading on Wednesday, EUR/USD was up 0.05% at 1.3532, up from a session low of 1.3474 and off from a high of 1.3567.
The pair was likely to find support at 1.3462, the low from Sept. 25 , and resistance at 1.3598, Monday's high.
Senate Majority Leader Harry Reid, a Democrat, and the Senate's top Republican, Mitch McConnell, said they agreed on a plan to end the fiscal impasse needed to reopen the government as well as extend Washington's borrowing authority to avoid defaults.
The dollar saw support on expectations that the House of Representatives may give the proposal the green light possibly today, though it didn't soar as markets were expecting a last-minute compromise similar to the debt-ceiling debates of 2011 and the fiscal cliff deal in late 2012.
U.S. credit ratings agency Fitch Ratings on Tuesday placed the U.S. 'AAA' debt on "rating watch negative" due to congressional inability to pass a spending package.
The budget deal will reportedly give the Treasury the authority to continue borrowing through Feb. 7 and fund the government through Jan. 15, but will also add in spending cuts, which appeased Republicans.
Meanwhile in the euro zone, data released on Wednesday showed that the annual rate of consumer inflation in the euro zone was unchanged from a preliminary estimate of 1.1% in September.
A separate report showed that the euro zone’s trade surplus widened to EUR12.3 billion in August from EUR11 billion in April, broadly in line with forecasts.
Elsewhere, the euro was up against the pound and up against the yen, with EUR/GBP trading up 0.38% at 0.8487 and EUR/JPY trading up 0.68% at 133.68.
On Thursday, the U.S. is to publish the weekly government report on initial jobless claims, as well as data on manufacturing activity from the Philly Fed.