Investing.com - The euro was almost unchanged against the dollar on Wednesday after the European Central Bank kept monetary policy on hold and Italy’s prime minister looked set to survive a confidence vote, as investors looked ahead to comments by ECB President Mario Draghi later in the session.
EUR/USD hit 1.3507 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3520, dipping 0.04%.
The pair was likely to find support at 1.3470, the low of September 26 and resistance at 1.3587, Tuesday’s high and an eight-month high.
The ECB left rates on hold at a record low 0.5%, in a widely expected decision.
Meanwhile, Italian Prime Minister Enrico Letta looked set to survive a vote of confidence in parliament, after Silvio Berlusconi dropped his opposition to the coalition, in a U-turn after announcing Saturday that he was pulling his ministers out of the government.
The dollar remained under pressure amid fears that the U.S. government shutdown would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Last month the U.S. central bank took markets by surprise with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
The euro was slightly lower against the pound, with EUR/GBP dipping 0.07% to 0.8346 and was weaker against the yen, with EUR/JPY down 0.55% to 131.81.
Sterling found support earlier after data showed that activity in the U.K. construction sector slowed slightly in September, but remained close to August’s almost six-year high.
The U.S. was to release the latest ADP nonfarm payrolls report later in the session.
EUR/USD hit 1.3507 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3520, dipping 0.04%.
The pair was likely to find support at 1.3470, the low of September 26 and resistance at 1.3587, Tuesday’s high and an eight-month high.
The ECB left rates on hold at a record low 0.5%, in a widely expected decision.
Meanwhile, Italian Prime Minister Enrico Letta looked set to survive a vote of confidence in parliament, after Silvio Berlusconi dropped his opposition to the coalition, in a U-turn after announcing Saturday that he was pulling his ministers out of the government.
The dollar remained under pressure amid fears that the U.S. government shutdown would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Last month the U.S. central bank took markets by surprise with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
The euro was slightly lower against the pound, with EUR/GBP dipping 0.07% to 0.8346 and was weaker against the yen, with EUR/JPY down 0.55% to 131.81.
Sterling found support earlier after data showed that activity in the U.K. construction sector slowed slightly in September, but remained close to August’s almost six-year high.
The U.S. was to release the latest ADP nonfarm payrolls report later in the session.