Investing.com - The euro fell to fresh session lows against the dollar on Wednesday after a senior European Central Bank official said the bank may adjust interest rates if new economic data warrants a rate cut.
EUR/USD hit 1.3045 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.3047, tumbling 0.97%.
The pair was likely to find support at 1.3004, the low of April 9 and resistance at 1.3199, the session high and a seven-week high.
The euro weakened broadly after ECB Governing Council member Jens Weidmann said the bank could cut interest rates if economic and inflation data indicated that it was warranted.
Weidmann said a rate cut would not solve the economic problems in the euro zone and urged political leaders to continue to implement reforms at the national level.
The comments came in an interview in the Wall Street Journal ahead of a weekend meeting of the International Monetary Fund.
On Tuesday, the IMF trimmed its 2013 forecast for global growth to 3.3%, down from its January projection of 3.5% and cut its 2014 forecast to 4.0% from 4.1%.
The IMF said continued monetary stimulus by the Federal Reserve and the Bank of Japan was expected to continue to support growth in the U.S. and Japan, while the euro zone still posed the greatest threat to a recovery in the global economy.
The single currency dipped against the pound, with EUR/GBP inching down 0.05% to 0.8569, down from session highs of 0.8637 and fell to session lows against the yen, with EUR/JPY falling 0.79% to 127.49.
The euro hit one-month highs against sterling earlier after official data showed the U.K. unemployment rate unexpectedly rose to 7.9% last month, from 7.8% in February. Analysts had expected the unemployment rate to remain unchanged.
Average U.K. earnings rose by a seasonally adjusted 0.8% year-on-year in the three months to February, below expectations for a 1.2% increase.
The number of people seeking unemployment benefits fell by a seasonally adjusted 7,000 in March, compared to expectations for an increase of 500.
Meanwhile, the minutes of the Bank of England’s April meeting showed that policymakers remained split over monetary policy.
EUR/USD hit 1.3045 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.3047, tumbling 0.97%.
The pair was likely to find support at 1.3004, the low of April 9 and resistance at 1.3199, the session high and a seven-week high.
The euro weakened broadly after ECB Governing Council member Jens Weidmann said the bank could cut interest rates if economic and inflation data indicated that it was warranted.
Weidmann said a rate cut would not solve the economic problems in the euro zone and urged political leaders to continue to implement reforms at the national level.
The comments came in an interview in the Wall Street Journal ahead of a weekend meeting of the International Monetary Fund.
On Tuesday, the IMF trimmed its 2013 forecast for global growth to 3.3%, down from its January projection of 3.5% and cut its 2014 forecast to 4.0% from 4.1%.
The IMF said continued monetary stimulus by the Federal Reserve and the Bank of Japan was expected to continue to support growth in the U.S. and Japan, while the euro zone still posed the greatest threat to a recovery in the global economy.
The single currency dipped against the pound, with EUR/GBP inching down 0.05% to 0.8569, down from session highs of 0.8637 and fell to session lows against the yen, with EUR/JPY falling 0.79% to 127.49.
The euro hit one-month highs against sterling earlier after official data showed the U.K. unemployment rate unexpectedly rose to 7.9% last month, from 7.8% in February. Analysts had expected the unemployment rate to remain unchanged.
Average U.K. earnings rose by a seasonally adjusted 0.8% year-on-year in the three months to February, below expectations for a 1.2% increase.
The number of people seeking unemployment benefits fell by a seasonally adjusted 7,000 in March, compared to expectations for an increase of 500.
Meanwhile, the minutes of the Bank of England’s April meeting showed that policymakers remained split over monetary policy.