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Forex - EUR/USD slips after Juncker remarks

Published 01/16/2013, 02:33 AM
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Investing.com - The euro slipped lower against the U.S. dollar on Wednesday after Jean-Claude Juncker, the head of the euro group of finance ministers, said the euro's value was “dangerously high”.

EUR/USD hit 1.3273 during late Asian trade, the session low; the pair subsequently consolidated at 1.3278, shedding 0.20%.

The pair was likely to find support at 1.3247, the low of January 11 and resistance at 1.3392, Tuesday’s high and an almost 11-month high.

Speaking Monday, Juncker said the situation in the euro zone was now more stable and added that the euro’s recent gains against the dollar posed a threat to the region’s economic recovery.

The euro has strengthened broadly amid signs that the worst of the crisis in the euro zone has passed and after European Central Bank President Mario Draghi held off from indicating any plans for additional monetary easing last week.

The single currency was almost unchanged against the pound, with EUR/GBP inching up 0.01% to 0.8281 and was sharply lower against the stronger yen, with EUR/JPY falling 0.82% to 117.16.

The yen remained supported after Japan’s economy minister said Tuesday that a weak yen could have a negative impact on the economy by pushing up import prices.

Later Wednesday both the euro zone and the U.S. were to release official data on consumer inflation, while Germany was to hold an auction of 10-year government bonds.



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