Investing.com – The euro extended losses against the U.S. dollar on Thursday, sliding to a fresh daily low amid concerns that the European Central Bank could dampen expectations for further monetary tightening this year.
EUR/USD hit 1.4266 during European late morning trade, the daily low; the pair subsequently consolidated at 1.4271, shedding 0.40%.
The pair was likely to find support at 1.4207, Wednesday’s low and resistance at 1.4348, Wednesday’s high and a 14-month high.
The ECB looked almost certain to raise interest rates later Thursday, lifting its key lending rate to 1.25% from a record low of 1.0%, tightening policy for the first time in almost three years.
Meanwhile, on Wednesday, Portugal became the third euro zone member to seek a bailout from the European Union, with the size of the package expected to be as much as EUR80 billion, after the country paid almost 6% to borrow for 12 months in a government bond auction.
Earlier in the day, Germany's deputy foreign minister praised Portugal's decision to seek aid from the EU, saying it had averted the risk of a euro zone chain reaction.
The euro was also lower against the pound, with EUR/GBP shedding 0.38% to hit 0.8741.
Later in the day, the ECB was to announce its minimum bid rate. The announcement was to be followed by a closely watched press conference. Also Thursday, the U.S. was to publish a weekly report on initial jobless claims.
EUR/USD hit 1.4266 during European late morning trade, the daily low; the pair subsequently consolidated at 1.4271, shedding 0.40%.
The pair was likely to find support at 1.4207, Wednesday’s low and resistance at 1.4348, Wednesday’s high and a 14-month high.
The ECB looked almost certain to raise interest rates later Thursday, lifting its key lending rate to 1.25% from a record low of 1.0%, tightening policy for the first time in almost three years.
Meanwhile, on Wednesday, Portugal became the third euro zone member to seek a bailout from the European Union, with the size of the package expected to be as much as EUR80 billion, after the country paid almost 6% to borrow for 12 months in a government bond auction.
Earlier in the day, Germany's deputy foreign minister praised Portugal's decision to seek aid from the EU, saying it had averted the risk of a euro zone chain reaction.
The euro was also lower against the pound, with EUR/GBP shedding 0.38% to hit 0.8741.
Later in the day, the ECB was to announce its minimum bid rate. The announcement was to be followed by a closely watched press conference. Also Thursday, the U.S. was to publish a weekly report on initial jobless claims.