Investing.com - The euro was little changed against the U.S. dollar on Wednesday, as markets were jittery amid renewed concerns over a possible U.S. military attack against Syria and investors looked for further clues on the Federal Reserve's next policy moves.
EUR/USD hit 1.3187 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3175, easing up 0.03%.
The pair was likely to find support at 1.3090, the low of July 19 and resistance at 1.3227, the high of September 2.
Official data showed that the U.S. trade deficit widened more-than-expected in July, falling to USD39.2 billion from a downwardly revised USD34.5 billion deficit the previous month. Analysts had expected the trade deficit to widen to USD38.7 billion in July.
The data came as investors continued to speculate over the timing of the Fed's widely expected reduction in monthly bond purchases after data on Tuesday showed that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in August.
Investors were now looking ahead to Friday’s highly-anticipated U.S. nonfarm payrolls report which is seen as key to the Fed’s decision on tapering.
Meanwhile, investors remained cautious after top congressional leaders, including Republican House Speaker John Boehner and Democrat Nancy Pelosi said they would back President Obama's call for military intervention in Syria.
In the euro zone, data earlier showed that the final reading of Germany’s services purchasing managers' index came in at 52.8 in August, up from a preliminary reading of 52.4. The euro zone’s services PMI dipped to 50.7, from an initial estimate for 51.0.
The euro was lower against the pound with EUR/GBP shedding 0.26%, to hit 0.84442.
Also Wednesday, data showed that activity in the U.K. services sector expanded at the fastest rate in six-and-a-half years in August.
Markit said the U.K. services purchasing managers’ index rose to 60.5 in August, the highest since December 2006, from 60.2 in July. Economists had forecast a decline to 59.0.
EUR/USD hit 1.3187 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3175, easing up 0.03%.
The pair was likely to find support at 1.3090, the low of July 19 and resistance at 1.3227, the high of September 2.
Official data showed that the U.S. trade deficit widened more-than-expected in July, falling to USD39.2 billion from a downwardly revised USD34.5 billion deficit the previous month. Analysts had expected the trade deficit to widen to USD38.7 billion in July.
The data came as investors continued to speculate over the timing of the Fed's widely expected reduction in monthly bond purchases after data on Tuesday showed that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in August.
Investors were now looking ahead to Friday’s highly-anticipated U.S. nonfarm payrolls report which is seen as key to the Fed’s decision on tapering.
Meanwhile, investors remained cautious after top congressional leaders, including Republican House Speaker John Boehner and Democrat Nancy Pelosi said they would back President Obama's call for military intervention in Syria.
In the euro zone, data earlier showed that the final reading of Germany’s services purchasing managers' index came in at 52.8 in August, up from a preliminary reading of 52.4. The euro zone’s services PMI dipped to 50.7, from an initial estimate for 51.0.
The euro was lower against the pound with EUR/GBP shedding 0.26%, to hit 0.84442.
Also Wednesday, data showed that activity in the U.K. services sector expanded at the fastest rate in six-and-a-half years in August.
Markit said the U.K. services purchasing managers’ index rose to 60.5 in August, the highest since December 2006, from 60.2 in July. Economists had forecast a decline to 59.0.