Investing.com - The euro is trading modestly lower against the U.S. dollar during Wednesday’s Asian session as hopes increase that the European Central Bank will lower interest rates following its monetary policy meeting Thursday.
In Asian trading Wednesday, EUR/USD inched down 0.04% to 1.3164. The pair was likely to find support at 1.3053, the session low and resistance at 1.3199, the high of April 17 and a two-month high.
Amid a spate of European and U.S. data points, EUR/USD has been in focus since Tuesday. Data published Tuesday showed the euro zone’s unemployment rate rose to 12.1% in March, from 12.0% in February, in line with expectations.
The euro zone's year-on-year consumer price index rose 1.2% in April, below the 1.7% rate recorded in March and well below expectations for a decline to 1.6%.
Slack data points are increasing speculation that due to the euro zone’s flailing economy, the ECB will be forced into parting interest rates sooner than later. The central bank’s benchmark interest rate is currently 0.75%. Last month, the International Monetary Fund pushed the ECB to consider lowing interest rates as a means of bolstering economic growth.
In U.S. economic news, the Standard & Poor's/Case-Shiller 20-city home price index surged 9.3% in February with annual prices in all 20 major metro areas rising for the second consecutive month.
The Institute for Supply Management said its index of Chicago-area manufacturing activity fell to 49 in April from 52.4 in March. Economists expected an April reading of 52.5. Readings below 50 indicate contraction. The Conference Board said its April consumer confidence index climbed to 68.1 from an upwardly revised 61.9 in March. Economists expected an April reading of 60.8.
Elsewhere, EUR/AUD inched lower by 0.04% to 1.2692 after China’s National Bureau of Statistics said the April reading of PMI in the world’s second-largest economy was 50.6 compared with 50.9 last month. Analysts expected an April reading of 50.7. Readings above 50 indicate expansion.
China is Australia's largest trading partner. EUR/JPY fell 0.12% to 128.15 while EUR/NZD lost 0.12% to 1.5357.
In Asian trading Wednesday, EUR/USD inched down 0.04% to 1.3164. The pair was likely to find support at 1.3053, the session low and resistance at 1.3199, the high of April 17 and a two-month high.
Amid a spate of European and U.S. data points, EUR/USD has been in focus since Tuesday. Data published Tuesday showed the euro zone’s unemployment rate rose to 12.1% in March, from 12.0% in February, in line with expectations.
The euro zone's year-on-year consumer price index rose 1.2% in April, below the 1.7% rate recorded in March and well below expectations for a decline to 1.6%.
Slack data points are increasing speculation that due to the euro zone’s flailing economy, the ECB will be forced into parting interest rates sooner than later. The central bank’s benchmark interest rate is currently 0.75%. Last month, the International Monetary Fund pushed the ECB to consider lowing interest rates as a means of bolstering economic growth.
In U.S. economic news, the Standard & Poor's/Case-Shiller 20-city home price index surged 9.3% in February with annual prices in all 20 major metro areas rising for the second consecutive month.
The Institute for Supply Management said its index of Chicago-area manufacturing activity fell to 49 in April from 52.4 in March. Economists expected an April reading of 52.5. Readings below 50 indicate contraction. The Conference Board said its April consumer confidence index climbed to 68.1 from an upwardly revised 61.9 in March. Economists expected an April reading of 60.8.
Elsewhere, EUR/AUD inched lower by 0.04% to 1.2692 after China’s National Bureau of Statistics said the April reading of PMI in the world’s second-largest economy was 50.6 compared with 50.9 last month. Analysts expected an April reading of 50.7. Readings above 50 indicate expansion.
China is Australia's largest trading partner. EUR/JPY fell 0.12% to 128.15 while EUR/NZD lost 0.12% to 1.5357.