Forex - EUR/USD remains lower as Fed meeting in spotlight

Published 09/21/2011, 10:18 AM
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Investing.com – The euro remained slightly weaker against the U.S. dollar on Wednesday, as investors awaited the outcome of the Federal Reserve policy setting meeting to see if the central bank would announce fresh measures to boost U.S. growth.

EUR/USD hit 1.3629 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.3670, shedding 0.21%.

The pair was likely to find support at 1.3592, Monday’s low and resistance at 1.3782, the high of September 14.

The Federal Reserve’s Open Market Committee was to conclude its two-day policy meeting later in the day. Central Bank Chairman Ben Bernanke was expected to announce plans to replace short-term Treasuries with long-term bonds, in a move known as Operation Twist.

In the euro zone, Greek Prime Minister George Papandreou convened a cabinet meeting earlier, after two days of talks between Greece’s finance minister and officials from the European Union and International Monetary Fund.

Greece’s government is scrambling to speed up the implementation of austerity measures needed to unlock its next tranche of aid before next month, in order to avert a default.

Meanwhile, the euro was higher against the pound, with EUR/GBP rising 0.67% to hit 0.8766.

Also Wednesday, industry data showed that U.S. existing home sales rose more-than-expected in August, rebounding from an eight-month low.

The National Association of Realtors said that existing home sales rose by 7.7% to a seasonally adjusted 5.03 million units in August, blowing past expectations for a gain of 1.7% to 4.75 million units.

Existing home sales in July totaled 4.67 million units.

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