Investing.com - The dollar firmed against the euro and other currencies on Wednesday amid relief buying on news Federal Reserve Vice Chair Janet Yellen will replace Ben Bernanke as the head of the U.S. central bank.
In U.S. trading on Wednesday, EUR/USD was down 0.44% at 1.3513, up from a session low of 1.3500 and off from a high of 1.3604.
The pair was likely to find support at 1.3478, the low from Sept. 30, and resistance at 1.3607, Tuesday's high.
U.S. President Barack Obama later today is due to announce his decision to name Janet Yellen as the new head of the Federal Reserve.
Yellen's nomination sparked relief buying for the dollar despite her being a noted policy dove seen as sticking with currently loose monetary policies, as she will likely win confirmation in the Senate and ensure a smooth transition of leadership in the U.S. central bank.
Yellen was seen competing for the job against former Treasury Secretary Larry Summers, who bowed out of the race last month, and her nomination clears up policy uncertainty, which gave the dollar room to rise despite expectations for overall monetary policy to remain on the loose side.
Current Fed Chair Ben Bernanke is due to step down Jan. 31.
Elsewhere, investors still remained cautious as a U.S. government shutdown continued into a second week, with few signs of a breakthrough ahead of an Oct. 17 deadline to raise the limit on federal debt borrowing and avoid a default sometime afterwards.
On Tuesday, President Obama reiterated that he will only enter negotiations with congressional Republicans after the government is reopened and the U.S. debt ceiling is raised without conditions.
Meanwhile in Europe, data released on Wednesday revealed that German industrial production rose 1.4% in August, above expectations for a 1.0% gain.
Elsewhere, the euro was up against the pound and down against the yen, with EUR/GBP trading up 0.43% at 0.8475 and EUR/JPY trading down 0.08% at 131.38.
On Thursday, the European Central Bank is to publish its monthly bulletin, which outlines the bank’s economic outlook.
In U.S. trading on Wednesday, EUR/USD was down 0.44% at 1.3513, up from a session low of 1.3500 and off from a high of 1.3604.
The pair was likely to find support at 1.3478, the low from Sept. 30, and resistance at 1.3607, Tuesday's high.
U.S. President Barack Obama later today is due to announce his decision to name Janet Yellen as the new head of the Federal Reserve.
Yellen's nomination sparked relief buying for the dollar despite her being a noted policy dove seen as sticking with currently loose monetary policies, as she will likely win confirmation in the Senate and ensure a smooth transition of leadership in the U.S. central bank.
Yellen was seen competing for the job against former Treasury Secretary Larry Summers, who bowed out of the race last month, and her nomination clears up policy uncertainty, which gave the dollar room to rise despite expectations for overall monetary policy to remain on the loose side.
Current Fed Chair Ben Bernanke is due to step down Jan. 31.
Elsewhere, investors still remained cautious as a U.S. government shutdown continued into a second week, with few signs of a breakthrough ahead of an Oct. 17 deadline to raise the limit on federal debt borrowing and avoid a default sometime afterwards.
On Tuesday, President Obama reiterated that he will only enter negotiations with congressional Republicans after the government is reopened and the U.S. debt ceiling is raised without conditions.
Meanwhile in Europe, data released on Wednesday revealed that German industrial production rose 1.4% in August, above expectations for a 1.0% gain.
Elsewhere, the euro was up against the pound and down against the yen, with EUR/GBP trading up 0.43% at 0.8475 and EUR/JPY trading down 0.08% at 131.38.
On Thursday, the European Central Bank is to publish its monthly bulletin, which outlines the bank’s economic outlook.