Investing.com - The euro moved off earlier lows against the dollar on Thursday after Federal Reserve chair nominee Janet Yellen told lawmakers she was committed to seeing monetary stimulus tools stay in place as needed to ensure more robust recovery.
In U.S. trading on Thursday, EUR/USD was down 0.11% at 1.3471, up from a session low of 1.3391 and off from a high of 1.3498.
The pair was likely to find support at 1.3298, Thursday's low, and resistance at 1.3548, the high from Nov. 6.
The euro, still reeling from an ECB rate cut amid fears inflation rates are waning, narrowed its losses against the greenback after Yellen told the Senate Banking Committee that the U.S. central bank's USD85 billion in monthly bond purchases have and will continue to support the economy until more sustained recovery becomes evident.
Monetary stimulus tools such as monthly bond purchases aim to spur recovery by driving down long-term interest rates, weakening the dollar in the process.
The dollar also came off earlier highs amid sentiments that even when the Fed begins to taper the pace of its monthly asset purchases be it in December or in early 2014, monetary tightening is still a long way away.
The euro softened earlier after official data revealed that the euro zone economy expanded by 0.1% in the three months to September, slowing from the 0.3% growth achieved in the second quarter when the euro zone exited a recession.
Economist had forecast quarter-on-quarter growth of 0.2%.
Elsewhere in the U.S., the Labor Department reported earlier that the number of individuals filing for initial jobless benefits last week declined by 2,000 to a seasonally adjusted 339,000.
Analysts had expected U.S. jobless claims to fall by 11,000, which also softened the dollar.
A separate report showed that the U.S. trade deficit widened to USD41.8 billion in September from a deficit of USD38.7 billion in August.
Analysts were expecting a USD39.0 billion deficit.
The single currency was down against the pound and up against the yen, with EUR/GBP trading down 0.23% at 0.8381 and EUR/JPY trading up 0.61% at 134.64.
The yen slumped against most major currencies after Japanese Finance Minister Taro Aso said Japan should maintain currency market interventions as policy tools to use when excess volatility roils markets.
On Friday, The euro zone is to release data on consumer price inflation.
The U.S. is to round up the week with data on manufacturing activity in the New York region, as well as reports on industrial production and import prices.
In U.S. trading on Thursday, EUR/USD was down 0.11% at 1.3471, up from a session low of 1.3391 and off from a high of 1.3498.
The pair was likely to find support at 1.3298, Thursday's low, and resistance at 1.3548, the high from Nov. 6.
The euro, still reeling from an ECB rate cut amid fears inflation rates are waning, narrowed its losses against the greenback after Yellen told the Senate Banking Committee that the U.S. central bank's USD85 billion in monthly bond purchases have and will continue to support the economy until more sustained recovery becomes evident.
Monetary stimulus tools such as monthly bond purchases aim to spur recovery by driving down long-term interest rates, weakening the dollar in the process.
The dollar also came off earlier highs amid sentiments that even when the Fed begins to taper the pace of its monthly asset purchases be it in December or in early 2014, monetary tightening is still a long way away.
The euro softened earlier after official data revealed that the euro zone economy expanded by 0.1% in the three months to September, slowing from the 0.3% growth achieved in the second quarter when the euro zone exited a recession.
Economist had forecast quarter-on-quarter growth of 0.2%.
Elsewhere in the U.S., the Labor Department reported earlier that the number of individuals filing for initial jobless benefits last week declined by 2,000 to a seasonally adjusted 339,000.
Analysts had expected U.S. jobless claims to fall by 11,000, which also softened the dollar.
A separate report showed that the U.S. trade deficit widened to USD41.8 billion in September from a deficit of USD38.7 billion in August.
Analysts were expecting a USD39.0 billion deficit.
The single currency was down against the pound and up against the yen, with EUR/GBP trading down 0.23% at 0.8381 and EUR/JPY trading up 0.61% at 134.64.
The yen slumped against most major currencies after Japanese Finance Minister Taro Aso said Japan should maintain currency market interventions as policy tools to use when excess volatility roils markets.
On Friday, The euro zone is to release data on consumer price inflation.
The U.S. is to round up the week with data on manufacturing activity in the New York region, as well as reports on industrial production and import prices.