Investing.com – The euro was down against the broadly stronger U.S. dollar on Thursday, falling to an eight-day low after the Federal Reserve warned of "significant” risks for the U.S. economy and unveiled a new plan to lower long-term borrowing costs.
EUR/USD hit 1.3528 during late Asian trade, the pair’s lowest since September 12; the pair subsequently consolidated at 1.3548, shedding 0.18%.
The pair was likely to find support at 1.3493, the low of September 12 and a seven-month low and resistance at 1.3693, the high of the same day.
The U.S. central bank said it would sell USD400 billion of short-term Treasury bonds to buy the same amount of longer-term U.S. government debt, in an attempt to boost the economy by pushing down long-term interest rates.
“There are significant downside risks to the economic outlook, including strains in global financial markets,” the bank said.
Meanwhile, Greece announced Wednesday that it had adopted further austerity measures in order to secure the next tranche of bailout loans.
Elsewhere, the euro edged higher against the pound, with EUR/GBP inching up 0.02% to hit 0.8759.
Later in the day, the euro zone was to publish preliminary data on activity in the manufacturing and service sectors, as well as official data on industrial new orders. Also Thursday, the U.S. was to publish its weekly report in initial jobless claims.
EUR/USD hit 1.3528 during late Asian trade, the pair’s lowest since September 12; the pair subsequently consolidated at 1.3548, shedding 0.18%.
The pair was likely to find support at 1.3493, the low of September 12 and a seven-month low and resistance at 1.3693, the high of the same day.
The U.S. central bank said it would sell USD400 billion of short-term Treasury bonds to buy the same amount of longer-term U.S. government debt, in an attempt to boost the economy by pushing down long-term interest rates.
“There are significant downside risks to the economic outlook, including strains in global financial markets,” the bank said.
Meanwhile, Greece announced Wednesday that it had adopted further austerity measures in order to secure the next tranche of bailout loans.
Elsewhere, the euro edged higher against the pound, with EUR/GBP inching up 0.02% to hit 0.8759.
Later in the day, the euro zone was to publish preliminary data on activity in the manufacturing and service sectors, as well as official data on industrial new orders. Also Thursday, the U.S. was to publish its weekly report in initial jobless claims.