Investing.com - The euro pulled back from session lows against the U.S. dollar on Wednesday, as investors looked ahead to the Federal Reserve’s rate decision later in the session, but remained under pressure after weak data clouded the outlook for the euro zone.
EUR/USD pulled away from 1.2921, the pair’s lowest since October 15 to hit 1.2960 during U.S. morning trade, still down 0.20% for the day.
The pair was likely to find support at 1.2834, the low of October 10 and resistance at 1.2996, the session high.
The single currency fell to the session low earlier after data showed that the flash euro zone manufacturing purchasing managers’ index fell to 45.3 in October from a final reading of 46.1 in September. Analysts had expected the index to ease up to 46.6 in October.
A separate report showed that the euro zone’s service’s PMI inched up to 46.2 in October from 46.1 last month.
Germany’s flash manufacturing PMI fell to 45.7 in October, from a final reading of 47.4 in September, adding to concerns over a slowdown the euro zone’s largest economy.
Separately, a report by German research institute Ifo showed that its closely watched business climate index deteriorated to its lowest level since March 2010 this month.
Elsewhere, European Central Bank President Mario Draghi met with German MP’s to defend the ECB’s bond purchasing plan aimed at lowering borrowing costs for troubled euro zone states.
Draghi also quashed speculation that Greece had been given two extra years to bring its budget deficit into line with targets.
The euro was lower against the pound and the yen, with EUR/GBP falling 0.64% to 0.8088 and EUR/JPY down 0.24% to 103.45.
Later Wednesday, the Federal Reserve was to announce its benchmark interest rate and release its first monetary policy statement since the central bank announced a third round of quantitative easing in September.
EUR/USD pulled away from 1.2921, the pair’s lowest since October 15 to hit 1.2960 during U.S. morning trade, still down 0.20% for the day.
The pair was likely to find support at 1.2834, the low of October 10 and resistance at 1.2996, the session high.
The single currency fell to the session low earlier after data showed that the flash euro zone manufacturing purchasing managers’ index fell to 45.3 in October from a final reading of 46.1 in September. Analysts had expected the index to ease up to 46.6 in October.
A separate report showed that the euro zone’s service’s PMI inched up to 46.2 in October from 46.1 last month.
Germany’s flash manufacturing PMI fell to 45.7 in October, from a final reading of 47.4 in September, adding to concerns over a slowdown the euro zone’s largest economy.
Separately, a report by German research institute Ifo showed that its closely watched business climate index deteriorated to its lowest level since March 2010 this month.
Elsewhere, European Central Bank President Mario Draghi met with German MP’s to defend the ECB’s bond purchasing plan aimed at lowering borrowing costs for troubled euro zone states.
Draghi also quashed speculation that Greece had been given two extra years to bring its budget deficit into line with targets.
The euro was lower against the pound and the yen, with EUR/GBP falling 0.64% to 0.8088 and EUR/JPY down 0.24% to 103.45.
Later Wednesday, the Federal Reserve was to announce its benchmark interest rate and release its first monetary policy statement since the central bank announced a third round of quantitative easing in September.