Investing.com - The euro was steady close to six-month highs against the dollar on Wednesday as uncertainty over the timing of possible tapering by the Federal Reserve continued to dominate market sentiment.
EUR/USD hit 1.3427 during late Asian trade, the session high; the pair subsequently consolidated at 1.3414, dipping 0.02%.
The pair was likely to find support at 1.3322, Tuesday’s low and near-term resistance at 1.3451, Tuesday’s high and a six-month peak.
The dollar came under pressure amid mounting expectations that the Fed may start to unwind its USD85 billion-a-month asset purchase program as soon as next month.
Investors were awaiting the minutes of the Fed’s July meeting later in the trading day for further indications as to when the central bank may start to pull back stimulus measures.
Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.
Demand for the single currency continued to be underpinned after data last week showed that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession.
The single currency was little changed against the pound, with EUR/GBP dipping 0.03% to 0.8561 and pushed higher against the yen, with EUR/JPY climbing 0.31% to 130.87.
The U.S. was to release private sector data on new home sales later Wednesday.
EUR/USD hit 1.3427 during late Asian trade, the session high; the pair subsequently consolidated at 1.3414, dipping 0.02%.
The pair was likely to find support at 1.3322, Tuesday’s low and near-term resistance at 1.3451, Tuesday’s high and a six-month peak.
The dollar came under pressure amid mounting expectations that the Fed may start to unwind its USD85 billion-a-month asset purchase program as soon as next month.
Investors were awaiting the minutes of the Fed’s July meeting later in the trading day for further indications as to when the central bank may start to pull back stimulus measures.
Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.
Demand for the single currency continued to be underpinned after data last week showed that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession.
The single currency was little changed against the pound, with EUR/GBP dipping 0.03% to 0.8561 and pushed higher against the yen, with EUR/JPY climbing 0.31% to 130.87.
The U.S. was to release private sector data on new home sales later Wednesday.