Forex - EUR/USD steady as market sentiment recovers after Sandy

Published 10/31/2012, 03:33 AM
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Investing.com - The euro was steady against the U.S. dollar on Wednesday, as U.S. markets prepared to reopen after Hurricane Sandy and investors awaited developments in the euro zone crisis.

EUR/USD hit 1.2947 during late Asian trade, the session low; the pair subsequently consolidated at 1.2956, dipping 0.01%.

The pair was likely to find support at 1.2885, Tuesday’s low and resistance at 1.3022, the high of October 25.

Euro zone finance ministers were to hold a conference call later in the day to discuss Greece’s progress on meeting austerity targets, but no decision on when the country will receive the next tranche of its bailout was expected.

Meanwhile, investors continued to await any sign that Spain is preparing to request a bailout, which would activate a bond purchasing program by the European Central Bank, aimed at lowering the borrowing costs of distressed euro zone states.

The euro zone was to release official data on the unemployment rate later in the session, amid concerns over the impact of the region’s crisis on its large core economies.

Data on Tuesday showed that the number of German unemployed rose by 20,000 in October, compared to expectations for an increase of 10,000.

The euro was slightly lower against the pound, with EUR/GBP sliding 0.09% to 0.8054 and was little changed against the yen, with EUR/JPY inching up 0.01% to 103.21.

Also Wednesday, the U.S. was to produce official data on manufacturing activity in Chicago, as well as a government report on crude oil inventories.



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