Investing.com - The euro remained unchanged against the U.S. dollar on Wednesday, after data showed that the U.S. economy grew at a faster rate than initially estimated in the fourth quarter.
EUR/USD hit 1.3423 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.3444, slipping 0.10%.
The pair was likely to find support at 1.3365, the low of February 27 and resistance at 1.3520, the high of December 1.
The U.S. Bureau of Economic Analysis said earlier that gross domestic product increased at a seasonally adjusted annual rate of 3.0% during the fourth quarter, up from a preliminary estimate of 2.8%.
Analysts had expected the second estimate of U.S. GDP to remain unchanged at 2.8%.
The euro dipped earlier after the European Central Bank allotted EUR529 billion in three-year loans to European lenders, after receiving bids from 800 banks, significantly more than in the bank’s first long term refinancing operation late last year.
In December, the EBC issued EUR489 billion in three-year loans to 523 banks, averting a liquidity shortage in the euro zone’s banking system and easing pressure on the region’s bond markets.
The injection of liquidity was expected to support demand for riskier assets but the increased demand sparked concerns that banks in the region expect liquidity pressures to continue.
Elsewhere, Finland’s parliament approved Greece’s second bailout package, one day after Germany’s parliament approved the bailout by a comfortable margin.
Also Wednesday, official data showed that consumer price inflation in the euro zone eased unexpectedly in January, rising by a seasonally adjusted 2.6%, down from a preliminary estimate of 2.7%.
The euro was also lower against the pound with EUR/GBP shedding 0.35%, to hit 0.8434.
Later in the day, Federal Reserve Chairman Ben Bernanke was to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.
EUR/USD hit 1.3423 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.3444, slipping 0.10%.
The pair was likely to find support at 1.3365, the low of February 27 and resistance at 1.3520, the high of December 1.
The U.S. Bureau of Economic Analysis said earlier that gross domestic product increased at a seasonally adjusted annual rate of 3.0% during the fourth quarter, up from a preliminary estimate of 2.8%.
Analysts had expected the second estimate of U.S. GDP to remain unchanged at 2.8%.
The euro dipped earlier after the European Central Bank allotted EUR529 billion in three-year loans to European lenders, after receiving bids from 800 banks, significantly more than in the bank’s first long term refinancing operation late last year.
In December, the EBC issued EUR489 billion in three-year loans to 523 banks, averting a liquidity shortage in the euro zone’s banking system and easing pressure on the region’s bond markets.
The injection of liquidity was expected to support demand for riskier assets but the increased demand sparked concerns that banks in the region expect liquidity pressures to continue.
Elsewhere, Finland’s parliament approved Greece’s second bailout package, one day after Germany’s parliament approved the bailout by a comfortable margin.
Also Wednesday, official data showed that consumer price inflation in the euro zone eased unexpectedly in January, rising by a seasonally adjusted 2.6%, down from a preliminary estimate of 2.7%.
The euro was also lower against the pound with EUR/GBP shedding 0.35%, to hit 0.8434.
Later in the day, Federal Reserve Chairman Ben Bernanke was to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.