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Forex - EUR/USD lower after Fed minutes, Yellen nomination

Published 10/10/2013, 02:34 AM
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Investing.com - The euro was lower against the dollar on Thursday after the minutes of the Federal Reserve’s latest meeting showed that most policymakers were still in favor of scaling back its stimulus program this year.

EUR/USD hit 1.3488 during late Asian trade, the session low; the pair subsequently consolidated at 1.3499, shedding 0.17%.

The pair was likely to find support at 1.3400 and resistance at 1.3590, the high of October 7.

The minutes from the Fed’s September meeting said the decision not to begin tapering stimulus was a "close call," fuelling expectations that the bank will begin to roll back bond purchases in the next few months.

The dollar was also boosted after President Barack Obama announced his nomination of Federal Reserve Vice Chairwoman Janet Yellen to head the U.S. central bank, easing uncertainty over U.S. monetary policy.

Investors remained wary as a partial U.S. government shutdown continued into a tenth day, with Congress still deadlocked over the U.S. debt ceiling and the federal budget.

President Obama has demanded Republicans raise the borrowing limit and reopen the government before negotiations on future fiscal policy can take place. The U.S. risks a sovereign debt default if the government borrowing limit is not raised by 17 October.

The euro was little changed against the pound, with EUR/GBP dipping 0.05% to 0.8471 and was higher against the yen, with EUR/JPY rising 0.20% to 131.92.

The European Central Bank was to publish its monthly bulletin later Thursday, while the Bank of England was to announce its benchmark interest rate.




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