Investing.com - The euro was little changed against the dollar on Wednesday as investors positioned ahead of the Federal Reserve’s policy decision later in the trading day, amid expectations for a small reduction to the bank’s stimulus program.
EUR/USD hit 1.3364 during late Asian trade, the session high; the pair subsequently consolidated at 1.3361, edging up 0.03%.
The pair was likely to find support at 1.3324, Tuesday’s low and resistance at 1.3384, Monday’s high and a three-week high.
Investors were focused on the outcome of the Fed’s two-day policy meeting, due to conclude later Wednesday. The central bank was expected to announce plans to start tapering its USD85 billion-a-month asset purchase program.
A recent series of soft economic data raised doubts over how much the U.S. central bank will reduce its stimulus program, weighing on the dollar.
The euro remained supported after data released on Tuesday showed that the closely watched ZEW index of German economic sentiment rose to the highest level since April 2010 in September, on the back of the improved economic outlook for the euro zone.
Elsewhere, the single currency was steady against the pound, with EUR/GBP dipping 0.01% to 0.8396 and edged higher against the yen, with EUR/JPY easing up 0.11% to 132.54.
The U.S. was to release data on building permits and housing starts later Wednesday, ahead of the Fed policy announcement. The Bank of England was to publish the minutes of its September meeting.
EUR/USD hit 1.3364 during late Asian trade, the session high; the pair subsequently consolidated at 1.3361, edging up 0.03%.
The pair was likely to find support at 1.3324, Tuesday’s low and resistance at 1.3384, Monday’s high and a three-week high.
Investors were focused on the outcome of the Fed’s two-day policy meeting, due to conclude later Wednesday. The central bank was expected to announce plans to start tapering its USD85 billion-a-month asset purchase program.
A recent series of soft economic data raised doubts over how much the U.S. central bank will reduce its stimulus program, weighing on the dollar.
The euro remained supported after data released on Tuesday showed that the closely watched ZEW index of German economic sentiment rose to the highest level since April 2010 in September, on the back of the improved economic outlook for the euro zone.
Elsewhere, the single currency was steady against the pound, with EUR/GBP dipping 0.01% to 0.8396 and edged higher against the yen, with EUR/JPY easing up 0.11% to 132.54.
The U.S. was to release data on building permits and housing starts later Wednesday, ahead of the Fed policy announcement. The Bank of England was to publish the minutes of its September meeting.