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Forex - EUR/USD steady near 1-week highs ahead of Fed minutes

Published 04/09/2014, 07:58 AM
Euro steady against dollar before Fed minutes
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Investing.com - The euro was steady close to one-week highs against the dollar on Wednesday as investors looked ahead to the minutes of the Federal Reserve’s March meeting due out later in the trading day.

EUR/USD was trading at 1.3794, not far from Tuesday’s highs of 1.3810.

The pair was likely to find support at 1.3760 and resistance at 1.3819, the high of April 2.

The dollar remained softer after last week’s U.S. payrolls report came in slightly below expectations. Market watchers were looking to the Fed minutes for further indications on the future direction of U.S. monetary policy.

Fed Chair Janet Yellen said recently that slack in labor markets showed accommodative policies will still be needed for some time.

The single currency continued to remain supported as recent comments by senior European Central Bank officials indicated that there is no urgent need for quantitative easing to stave off the threat of deflation in the region.

In the euro zone, Greece was preparing to return to the sovereign bond markets for the first time since 2010, when Athens sought its first bailout. The yield on 10-year Greek debt dropped to below 6.1% earlier, down from 6.18% late Tuesday, ahead of an auction of five year bonds on Thursday.

The shared currency pushed higher against the yen, with EUR/JPY rising 0.15% to 140.68.

The pair fell to lows of 140.07 on Tuesday after the Bank of Japan indicated that it was unlikely to implement further stimulus measures in the short term at the end of its two-day policy meeting.

BoJ Governor Haruhiko Kuroda said the economy can weather a sales tax increase without further monetary policy measures to offset it. He added that growth and inflation were likely to continue to pick up in the coming months.

The dollar also regained some ground against the yen, with USD/JPY up 0.19% to 102.01, after falling more than 1% on Tuesday to lows of 101.54, the weakest level since March 19.

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