Investing.com - The euro remained close to the session low against the U.S. dollar on Wednesday, following remarks by German Chancellor Angela Merkel, as investors looked ahead to a second day of testimony by Federal Reserve Chairman Ben Bernanke.
EUR/USD hit 1.2217 during European early afternoon trade, the session low; the pair subsequently consolidated at 1.2246, shedding 0.40%.
The pair was likely to find near-term support at 1.2174, Monday’s low and resistance at 1.2315, Tuesday’s high.
The euro came under pressure after Chancellor Merkel said in an interview that she was not certain the European project would be successful, but reiterated that she was optimistic in spite of the current difficulties.
Earlier in the day, Germany auctioned more than EUR4 billion of two-year government bonds at negative yields for the first time at this type of auction, reflecting sustained investor concerns over the debt crisis in the region.
Meanwhile, market participants continued to mull over mixed messages from the U.S. central bank after Chairman Ben Bernanke offered a downbeat view of the U.S. economic outlook in testimony to the Senate on Tuesday, but failed to explicitly indicate if additional stimulus measures are imminent.
Bernanke was due to testify on the economy and monetary policy in front of the House Financial Services Committee later in the session.
The euro was hovering close to a three-and-a-half year low against the pound, with EUR/GBP down 0.14% to 0.7844 and was also lower against the yen, with EUR/JPY sliding 0.48% to trade at 96.73.
Later in the day, the U.S. was to publish official data on building permits and housing starts.
EUR/USD hit 1.2217 during European early afternoon trade, the session low; the pair subsequently consolidated at 1.2246, shedding 0.40%.
The pair was likely to find near-term support at 1.2174, Monday’s low and resistance at 1.2315, Tuesday’s high.
The euro came under pressure after Chancellor Merkel said in an interview that she was not certain the European project would be successful, but reiterated that she was optimistic in spite of the current difficulties.
Earlier in the day, Germany auctioned more than EUR4 billion of two-year government bonds at negative yields for the first time at this type of auction, reflecting sustained investor concerns over the debt crisis in the region.
Meanwhile, market participants continued to mull over mixed messages from the U.S. central bank after Chairman Ben Bernanke offered a downbeat view of the U.S. economic outlook in testimony to the Senate on Tuesday, but failed to explicitly indicate if additional stimulus measures are imminent.
Bernanke was due to testify on the economy and monetary policy in front of the House Financial Services Committee later in the session.
The euro was hovering close to a three-and-a-half year low against the pound, with EUR/GBP down 0.14% to 0.7844 and was also lower against the yen, with EUR/JPY sliding 0.48% to trade at 96.73.
Later in the day, the U.S. was to publish official data on building permits and housing starts.