Investing.com - The euro slipped lower against the dollar on Thursday as investors awaited the outcome of a European Central Bank meeting later in the day amid expectations for a rate cut.
EUR/USD hit 1.3151 during late Asian trade, the session low; the pair subsequently consolidated at 1.3157, shedding 0.16%.
The pair was likely to find support at 1.3053, Tuesday’s low and resistance at 1.3200, the high of April 16.
Speculation over a rate cut intensified after recent weak economic data indicated that the economic outlook for the euro zone was deteriorating.
Data on Tuesday showed that euro zone unemployment rose to a record 12.1% in March while another report showed that inflation fell more-than-expected in April.
Recent comments by ECB officials have indicated that the bank would consider cutting rates if it was warranted by worsening economic data.
On Wednesday, the Federal Reserve recommitted to its USD85 billion a month asset purchase program and indicated that it could increase or decrease the monthly amount as deemed necessary.
"The Committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor market or inflation changes," the Fed statement said.
Investors were looking ahead to Friday’s data on U.S. nonfarm payrolls after the ADP jobs report fell short of expectations on Wednesday, adding to concerns over the economic recovery.
The euro was also lower against the pound and the yen, with EUR/GBP down 0.15% to 0.8459 and EUR/JPY falling 0.28% to 127.99.
Spain and Italy were to release data on manufacturing activity later Thursday, while France was to hold an auction of 10-year government bonds.
The U.S. was to publish the weekly government report on initial jobless claims and official data on the trade balance.
EUR/USD hit 1.3151 during late Asian trade, the session low; the pair subsequently consolidated at 1.3157, shedding 0.16%.
The pair was likely to find support at 1.3053, Tuesday’s low and resistance at 1.3200, the high of April 16.
Speculation over a rate cut intensified after recent weak economic data indicated that the economic outlook for the euro zone was deteriorating.
Data on Tuesday showed that euro zone unemployment rose to a record 12.1% in March while another report showed that inflation fell more-than-expected in April.
Recent comments by ECB officials have indicated that the bank would consider cutting rates if it was warranted by worsening economic data.
On Wednesday, the Federal Reserve recommitted to its USD85 billion a month asset purchase program and indicated that it could increase or decrease the monthly amount as deemed necessary.
"The Committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor market or inflation changes," the Fed statement said.
Investors were looking ahead to Friday’s data on U.S. nonfarm payrolls after the ADP jobs report fell short of expectations on Wednesday, adding to concerns over the economic recovery.
The euro was also lower against the pound and the yen, with EUR/GBP down 0.15% to 0.8459 and EUR/JPY falling 0.28% to 127.99.
Spain and Italy were to release data on manufacturing activity later Thursday, while France was to hold an auction of 10-year government bonds.
The U.S. was to publish the weekly government report on initial jobless claims and official data on the trade balance.