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Forex - EUR/USD remains near 6-month trough after Draghi remarks

Published 11/20/2015, 09:59 AM
© Reuters.  Euro remains lower vs. greenback amid ECB stimulus speculation
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Investing.com - The euro remained lower against the U.S. dollar on Friday, hovering close to a six-month lows amid growing expectations for futher stimulus measures by the European Central Bank and hopes for a U.S. rate hike in December.

EUR/USD hit 1.0664, during U.S. morning trade, the session low; the pair subsequently consolidated at 1.0686, down 0.48%.

The pair was likely to find support at 1.0614, the low of November 18 and a six-month low and resistance at 1.0779, the high of November 16.

The euro weakened broadly after ECB President Mario Draghi reiterated on Friday that the central bank will do what is necessary to ensure that inflation returns rapidly toward the goal of just under 2%.

The comments came a day after the minutes of the ECB’s October meeting showed on Thursday that the risk that it would miss its inflation target again has increased.

Meanwhile, the dollar remained supported after the minutes of the Federal Reserve's October meeting showed on Wednesday that a majority of board members are in favor of a December rate hike.

"While no decision had been made, it may well become appropriate to initiate the normalization process at the next meeting," the minutes said.

The euro was also lower against the pound, with EUR/GBP slipping 0.16% to 0.7008.

Earlier Friday, the U.K. Office for National Statistics reported that public sector net borrowing rose by £7.47 billion in October after an increase of £8.33 billion in September, whose figure was revised from a previously estimated £8.63 billion rise.

Analysts had expected public sector net borrowing to increase by £5.50 billion last month.

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