Investing.com - The euro moved higher against the dollar on Wednesday as gains in Asian equities markets overnight bolstered investor confidence, but gains looked likely to remain limited ahead of the upcoming European Central Bank policy meeting.
EUR/USD hit 1.3521 during late Asian trade, the session high; the pair subsequently consolidated at 1.3497, gaining 0.17%.
The pair was likely to find support at 1.3441, Monday’s low and a one-and-a-half month low and resistance at 1.3570.
The euro remained under pressure after data last week showing that euro zone annual inflation fell to a four year low last month raised concerns that the ECB might cut rates in order to safeguard the economic recovery in the region.
While no policy change was expected from the ECB on Thursday many investors expected the bank to signal the possibility of further monetary policy easing at its meeting in December.
The European Commission cut its forecast for euro zone growth on Tuesday and said that unemployment in the region remains at unacceptably high levels.
Demand for the dollar continued to be underpinned after data on Tuesday showing that service sector activity in the U.S. grew at a faster than expected pace in October supported the view that the Federal Reserve could start scaling back stimulus as soon as next month.
The euro was also higher against the yen, with EUR/JPY up 0.30% to 133.11.
Elsewhere, the dollar edged higher against the yen, with USD/JPY inching up 0.12% to 98.61.
EUR/USD hit 1.3521 during late Asian trade, the session high; the pair subsequently consolidated at 1.3497, gaining 0.17%.
The pair was likely to find support at 1.3441, Monday’s low and a one-and-a-half month low and resistance at 1.3570.
The euro remained under pressure after data last week showing that euro zone annual inflation fell to a four year low last month raised concerns that the ECB might cut rates in order to safeguard the economic recovery in the region.
While no policy change was expected from the ECB on Thursday many investors expected the bank to signal the possibility of further monetary policy easing at its meeting in December.
The European Commission cut its forecast for euro zone growth on Tuesday and said that unemployment in the region remains at unacceptably high levels.
Demand for the dollar continued to be underpinned after data on Tuesday showing that service sector activity in the U.S. grew at a faster than expected pace in October supported the view that the Federal Reserve could start scaling back stimulus as soon as next month.
The euro was also higher against the yen, with EUR/JPY up 0.30% to 133.11.
Elsewhere, the dollar edged higher against the yen, with USD/JPY inching up 0.12% to 98.61.