Investing.com - The euro was steady near two-and-a-half week lows against the U.S. dollar on Wednesday, as hopes for a U.S. rate hike before the end of the year supported the greenback, while investors remained cautious ahead of a string of economic reports due out of the euro zone.
EUR/USD hit 1.1105 during late Asian trade, the pair's lowest since September 4; the pair subsequently consolidated at 1.1120.
The pair was likely to find support at 1.1086, the low of September 3 and resistance at 1.1209, Tuesday's high.
The dollar remained supported after comments by some Federal Reserve officials Monday night indicated that a U.S. rate hike is still on the cards this year.
St. Louis Fed President James Bullard and Atlanta Fed President Dennis Lockhart indicated in separate remarks that the U.S. central bank is still likely to raise short-term interest rates this year.
Investors were looking ahead to a speech by Fed Chair Janet Yellen later in the week for additional clarity on the bank’s decision last week to leave interest rates on hold.
Meanwhile, markets were jittery ahead of a string of reports on manufacturing and service sector activity from the euro zone due later in the day.
The single currency had come under pressure after European Central Bank Chief Economist Peter Praet reiterated Saturday that the bank is prepared to enlarge its monetary stimulus program if necessary to combat risks from global economic turbulence.
Earlier this month the ECB cut its forecasts for growth and inflation and indicated that its trillion-euro bond-buying program could be scaled up.
Elsewhere, data earlier showed that China's Caixin manufacturing purchasing managers' index fell to 47.0 this month from 47.3 in August, compared to expectations for a rise to 47.5.
The weak data added to concerns over a global economic slowdown.
The euro was higher against the pound, with EUR/GBP adding 0.16% to 0.7252.