Investing.com - The euro pulled back from 23-month highs against the dollar on Wednesday as traders took profits after Tuesday’s rally, while the dollar remained under pressure on the view that the Federal Reserve is likely to maintain its stimulus program into next year.
EUR/USD pulled back from 1.3793, the highest since November 2011 to hit 1.3755 during European trade, sliding 0.18%.
The pair was likely to find support at 1.3750 and resistance at 1.3858, the high of November 9, 2011.
The dollar fell sharply against the euro on Tuesday after the latest U.S. employment report showed that jobs growth had slowed even before the start of the recent 16-day government shutdown.
The Department of Labor said the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August, but this was partially due to more people dropping out of the labor force.
The disappointing data reinforced expectations that the Fed will postpone plans to start tapering its asset purchase program until well into next year.
The European Central Bank announced details of new bank stress tests on Wednesday. The review is to run over the course of a year and conclude before the ECB assumes its supervisory role over the bloc’s banking sector at the end of 2014.
Elsewhere, the euro was higher against the pound, with EUR/GBP up 0.32% to 0.8515 and was sharply lower against the stronger yen, with EUR/JPY falling 0.92% to 13.98.
Earlier Wednesday, the minutes of the Bank of England’s October meeting said the U.K. unemployment rate appears to be falling at a faster than expected rate as the "robust" recovery gains traction.
The bank also estimated that growth in the second half of the year would remain around 0.7% a quarter or a little higher, stronger than expected at the time of the August inflation report.
EUR/USD pulled back from 1.3793, the highest since November 2011 to hit 1.3755 during European trade, sliding 0.18%.
The pair was likely to find support at 1.3750 and resistance at 1.3858, the high of November 9, 2011.
The dollar fell sharply against the euro on Tuesday after the latest U.S. employment report showed that jobs growth had slowed even before the start of the recent 16-day government shutdown.
The Department of Labor said the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August, but this was partially due to more people dropping out of the labor force.
The disappointing data reinforced expectations that the Fed will postpone plans to start tapering its asset purchase program until well into next year.
The European Central Bank announced details of new bank stress tests on Wednesday. The review is to run over the course of a year and conclude before the ECB assumes its supervisory role over the bloc’s banking sector at the end of 2014.
Elsewhere, the euro was higher against the pound, with EUR/GBP up 0.32% to 0.8515 and was sharply lower against the stronger yen, with EUR/JPY falling 0.92% to 13.98.
Earlier Wednesday, the minutes of the Bank of England’s October meeting said the U.K. unemployment rate appears to be falling at a faster than expected rate as the "robust" recovery gains traction.
The bank also estimated that growth in the second half of the year would remain around 0.7% a quarter or a little higher, stronger than expected at the time of the August inflation report.