Forex - EUR/USD steady, supported ahead of ECB

Published 09/04/2012, 08:06 AM
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Investing.com - The euro was steady against the U.S. dollar on Tuesday, remaining supported ahead of the European Central Bank’s upcoming policy meeting amid expectations that the bank will soon announce measures to stem the debt crisis in the region.

EUR/USD hit 1.2628 during European afternoon trade, the pair’s highest since Friday; the pair subsequently consolidated at 1.2592, inching up 0.02%.

The pair was likely to find support at 1.2492, Friday’s low and near-term resistance at 1.2636, Friday’s high and a two-month high.

The euro continued to be supported by expectations that the ECB will announce details of measures to help stabilize the region’s sovereign debt markets after its upcoming policy setting meeting on Thursday.

The shared currency was little changed after ratings agency Moody’s lowered its outlook on the European Union's triple-A rating to negative, from stable.

Market participants were also anticipating next week’s Federal Reserve meeting, amid ongoing speculation over how close the U.S. central bank is to implementing another round of easing.

Investors were awaiting U.S. government data on non-farm payrolls on Friday, to see if the labor market has improved.

The euro was almost unchanged against the pound, with EUR/GBP inching up 0.01% to 0.7926 and EUR/JPY rising 0.14% to 98.67.

Later Tuesday, the Institute for Supply Management was to release a closely watched report on U.S. manufacturing growth.


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