Investing.com - The euro held steady against the U.S. dollar on Thursday, as Greece braced for June elections that could signal an end to its membership in the eurozone, while solid U.S. housing data pushed the greenback up, despite dovish Fed comments.
In Asian trading on Thursday, EUR/USD was trading up 0.05% at 1.2722, up from a session low of 1.2713, and off from a high of 1.2723.
The pair was likely to test support at 1.2682, the low of May 16, and resistance at 1.2869, the high of May 15.
Greece appears headed for a new round of elections on June 17 after political parties failed to piece together a coalition government.
While electoral fears have pushed the unit down in recent trading sessions, the pair did see support on comments from German Chancellor Angela Merkel, who said she wants to see Greece stay in the currency bloc.
European Central Bank President Mario Draghi echoed similar sentiments.
Meanwhile the European Central Bank has stopped supplying some Greek banks with liquidity on grounds they have not adequately recapitalized.
Greeks have begun to yank their euros out of the country's banks on expectations upcoming elections will ring in enough politicians who favor policies that might get the country booted from the eurozone, such as ditching austerity measures.
The dollar, meanwhile, saw favorable winds prior to Asian trading on Thursday.
Data tied to the U.S. housing sector, which threw the world's largest economy into the recession and continues to drag its recovery, saw some bright spots earlier.
New housing starts rose 2.6% in April to a seasonally adjusted 717,000 units, beating out expectations for a decline to 680,000 units.
April building permits issued in the U.S., however, dropped 7.0%, worse than expectations for a 4.5% decline.
Also in the U.S., industrial production in April rose 1.1%, outpacing expectations for a gain of 0.6%.
March’s figure was revised down to a 0.6% contraction from a previously flat reading.
Meanwhile in the U.S., minutes from the latest Federal Reserve monetary policy meeting were released, revealing that several policymakers favored stimulating the economy via monetary easing measures if the country's tepid recovery threatens to veer off course.
Easing measures tend to weaken the dollar in order to promote price stability and optimal employment levels.
In Europe, the eurozone's inflation rate held steady at 2.6% in April, unchanged from a preliminary estimate.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP up 0.02% at 0.7994 and EUR/JPY trading up 0.09% at 102.25.
Later Thursday, the U.S. is to produce government data on unemployment claims, followed by a report on manufacturing activity in the Philadelphia area.
In Asian trading on Thursday, EUR/USD was trading up 0.05% at 1.2722, up from a session low of 1.2713, and off from a high of 1.2723.
The pair was likely to test support at 1.2682, the low of May 16, and resistance at 1.2869, the high of May 15.
Greece appears headed for a new round of elections on June 17 after political parties failed to piece together a coalition government.
While electoral fears have pushed the unit down in recent trading sessions, the pair did see support on comments from German Chancellor Angela Merkel, who said she wants to see Greece stay in the currency bloc.
European Central Bank President Mario Draghi echoed similar sentiments.
Meanwhile the European Central Bank has stopped supplying some Greek banks with liquidity on grounds they have not adequately recapitalized.
Greeks have begun to yank their euros out of the country's banks on expectations upcoming elections will ring in enough politicians who favor policies that might get the country booted from the eurozone, such as ditching austerity measures.
The dollar, meanwhile, saw favorable winds prior to Asian trading on Thursday.
Data tied to the U.S. housing sector, which threw the world's largest economy into the recession and continues to drag its recovery, saw some bright spots earlier.
New housing starts rose 2.6% in April to a seasonally adjusted 717,000 units, beating out expectations for a decline to 680,000 units.
April building permits issued in the U.S., however, dropped 7.0%, worse than expectations for a 4.5% decline.
Also in the U.S., industrial production in April rose 1.1%, outpacing expectations for a gain of 0.6%.
March’s figure was revised down to a 0.6% contraction from a previously flat reading.
Meanwhile in the U.S., minutes from the latest Federal Reserve monetary policy meeting were released, revealing that several policymakers favored stimulating the economy via monetary easing measures if the country's tepid recovery threatens to veer off course.
Easing measures tend to weaken the dollar in order to promote price stability and optimal employment levels.
In Europe, the eurozone's inflation rate held steady at 2.6% in April, unchanged from a preliminary estimate.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP up 0.02% at 0.7994 and EUR/JPY trading up 0.09% at 102.25.
Later Thursday, the U.S. is to produce government data on unemployment claims, followed by a report on manufacturing activity in the Philadelphia area.