Investing.com - The euro was lower against the dollar on Wednesday after the White House said President Barack Obama is set to nominate Janet Yellen to head the Federal Reserve, but concerns over the ongoing political impasse in Washington limited losses.
EUR/USD hit 1.3546 during late Asian trade, the lowest since Monday; the pair subsequently consolidated at 1.3551, shedding 0.15%.
The pair was likely to find support at 1.3503, the low of October 2 and resistance at 1.3606, Tuesday’s high.
The dollar found support ahead of Ms. Yellen’s nomination amid expectations that under her leadership Fed policy could remain accommodative for some time. If Ms. Yellen’s nomination is confirmed by the Senate, she will succeed Chairman Ben Bernanke, whose term ends January 31.
Investors remained cautious as a partial U.S. government shutdown dragged on into a second week, with few signs of progress towards a resolution ahead of an October 17 deadline to avoid a U.S. sovereign default.
International Monetary Fund Chief Economist Olivier Blanchard said Tuesday that a prolonged failure to raise the U.S. debt ceiling would "almost certainly derail the recovery".
Elsewhere, the euro was little changed against the pound, with EUR/GBP inching up 0.04% to 0.8441 and was higher against the yen, with EUR/JPY rising 0.44% to 132.02.
Investors were looking ahead to the minutes of the Fed’s September meeting later Wednesday, after the U.S. central bank surprised markets with a decision to keep its stimulus program on track.
EUR/USD hit 1.3546 during late Asian trade, the lowest since Monday; the pair subsequently consolidated at 1.3551, shedding 0.15%.
The pair was likely to find support at 1.3503, the low of October 2 and resistance at 1.3606, Tuesday’s high.
The dollar found support ahead of Ms. Yellen’s nomination amid expectations that under her leadership Fed policy could remain accommodative for some time. If Ms. Yellen’s nomination is confirmed by the Senate, she will succeed Chairman Ben Bernanke, whose term ends January 31.
Investors remained cautious as a partial U.S. government shutdown dragged on into a second week, with few signs of progress towards a resolution ahead of an October 17 deadline to avoid a U.S. sovereign default.
International Monetary Fund Chief Economist Olivier Blanchard said Tuesday that a prolonged failure to raise the U.S. debt ceiling would "almost certainly derail the recovery".
Elsewhere, the euro was little changed against the pound, with EUR/GBP inching up 0.04% to 0.8441 and was higher against the yen, with EUR/JPY rising 0.44% to 132.02.
Investors were looking ahead to the minutes of the Fed’s September meeting later Wednesday, after the U.S. central bank surprised markets with a decision to keep its stimulus program on track.