Investing.com - The euro traded up against the dollar in early Asian trading on Thursday, reversing earlier losses sustained when the U.S. Federal Reserve released the minutes of its last monetary policy meeting, revealing no clear plans to stimulate the economy and sparking a dollar rally.
In Asian trading on Thursday, EUR/USD was trading up 0.03% at 1.2245, up from a session low of 1.2213 and off from a high of 1.2296.
The pair was likely to find support at 1.2213, the earlier low, and resistance at 1.2324, the high from July 9.
Earlier, the Federal Reserve released the minutes of its June 19-20 meeting, basically reiterating previous commitments that it stands ready to intervene and stimulate the economy via monetary easing measures but made no allusions as to whether such a move was becoming increasingly likely.
Markets were expecting a more dovish policy shift in favor of easing in wake of a string of weak jobs reports and other economic indicators.
"A few members expressed the view that further policy stimulus likely would be necessary to promote satisfactory growth in employment and to ensure that the inflation rate would be at the Committee's goal," the Federal Reserve said in the minutes released in the U.S. on Wednesday.
"Several others noted that additional policy action could be warranted if the economic recovery were to lose momentum, if the downside risks to the forecast became sufficiently pronounced, or if inflation seemed likely to run persistently below the Committee's longer-run objective."
The Fed's comments sent the dollar rising, as easing measures weaken the greenback as a tradeoff for spurring recovery, though dollar profit-taking sent the euro rising early in the Asian session.
Meanwhile in Europe, a German court put off deciding on whether or not participating in bailouts and other eurozone rescue measures violated national law.
In Spain, meanwhile, the government rolled out a EUR65 billion austerity plan, which bolstered the euro, though optimism from the announcement was short-lived on sentiment that austerity measures will prolong Spain's recession.
Yields fell in German bond markets earlier as investors flocked to the safety of German debt on sentiment the debt crisis remains far from being contained.
Still, the Fed minutes continued to serve as the market's chief weather vane in early Asian trading.
The euro, meanwhile, was up slightly against the pound and down against the yen, with EUR/GBP up 0.01% at 0.7897 and EUR/JPY trading down 0.10% at 97.53.
Later Thursday in the eurozone, industrial production data will publish, while the ECB is to release its monthly bulletin, which reveals the statistical data that the central bank’s Governing Board evaluates when making interest rate decisions.
ECB President Mario Draghi is also scheduled to speak later in the day.
The U.S. will release weekly unemployment claims and official data on import prices, followed by the monthly Treasury statement.
In Asian trading on Thursday, EUR/USD was trading up 0.03% at 1.2245, up from a session low of 1.2213 and off from a high of 1.2296.
The pair was likely to find support at 1.2213, the earlier low, and resistance at 1.2324, the high from July 9.
Earlier, the Federal Reserve released the minutes of its June 19-20 meeting, basically reiterating previous commitments that it stands ready to intervene and stimulate the economy via monetary easing measures but made no allusions as to whether such a move was becoming increasingly likely.
Markets were expecting a more dovish policy shift in favor of easing in wake of a string of weak jobs reports and other economic indicators.
"A few members expressed the view that further policy stimulus likely would be necessary to promote satisfactory growth in employment and to ensure that the inflation rate would be at the Committee's goal," the Federal Reserve said in the minutes released in the U.S. on Wednesday.
"Several others noted that additional policy action could be warranted if the economic recovery were to lose momentum, if the downside risks to the forecast became sufficiently pronounced, or if inflation seemed likely to run persistently below the Committee's longer-run objective."
The Fed's comments sent the dollar rising, as easing measures weaken the greenback as a tradeoff for spurring recovery, though dollar profit-taking sent the euro rising early in the Asian session.
Meanwhile in Europe, a German court put off deciding on whether or not participating in bailouts and other eurozone rescue measures violated national law.
In Spain, meanwhile, the government rolled out a EUR65 billion austerity plan, which bolstered the euro, though optimism from the announcement was short-lived on sentiment that austerity measures will prolong Spain's recession.
Yields fell in German bond markets earlier as investors flocked to the safety of German debt on sentiment the debt crisis remains far from being contained.
Still, the Fed minutes continued to serve as the market's chief weather vane in early Asian trading.
The euro, meanwhile, was up slightly against the pound and down against the yen, with EUR/GBP up 0.01% at 0.7897 and EUR/JPY trading down 0.10% at 97.53.
Later Thursday in the eurozone, industrial production data will publish, while the ECB is to release its monthly bulletin, which reveals the statistical data that the central bank’s Governing Board evaluates when making interest rate decisions.
ECB President Mario Draghi is also scheduled to speak later in the day.
The U.S. will release weekly unemployment claims and official data on import prices, followed by the monthly Treasury statement.