Investing.com - The euro fell to session lows against the dollar on Wednesday as news that Janet Yellen is to be nominated to run the Federal Reserve helped offset concerns over the threat of a U.S. sovereign debt default.
EUR/USD hit 1.3500 during U.S. morning trade, the lowest since September 30; the pair subsequently consolidated at 1.3509, shedding 0.47%.
The pair was likely to find support at 1.3470, and resistance at 1.3604, the session high.
The White House said President Barack Obama was to announce his nomination of Federal Reserve Vice Chairwoman Janet Yellen to head the U.S. central bank later Wednesday.
Demand for the dollar was underpinned by expectations that Fed policy could remain accommodative for some time. If Ms. Yellen’s nomination is confirmed by the Senate, she will succeed Chairman Ben Bernanke, whose term ends January 31.
But investors remained cautious as a partial U.S. government shutdown continued into a second week, with few signs of a breakthrough, ahead of an October 17 deadline to raise the limit on federal debt borrowing and avoid a default.
On Tuesday, President Obama repeated that he will only enter negotiations with congressional Republicans after the government is reopened and the U.S. debt ceiling is raised without conditions.
In the euro zone, data released on Wednesday showed that German industrial production rose 1.4% in August, above expectations for a 1% gain and was 0.3% higher on a year-over-year basis.
The euro rose to five-week highs against the pound, with EUR/GBP rising 0.50% to 0.8479 and was almost unchanged against the yen, with EUR/JPY dipping 0.03% to 131.43.
Sterling came under pressure after data showed that U.K. industrial production fell at the fastest rate in nearly a year in August, rising doubts over the outlook for third quarter growth.
Investors were awaiting the release of minutes from the Fed’s September meeting later Wednesday, after the U.S. central bank surprised markets with a decision to keep its stimulus program on track.
EUR/USD hit 1.3500 during U.S. morning trade, the lowest since September 30; the pair subsequently consolidated at 1.3509, shedding 0.47%.
The pair was likely to find support at 1.3470, and resistance at 1.3604, the session high.
The White House said President Barack Obama was to announce his nomination of Federal Reserve Vice Chairwoman Janet Yellen to head the U.S. central bank later Wednesday.
Demand for the dollar was underpinned by expectations that Fed policy could remain accommodative for some time. If Ms. Yellen’s nomination is confirmed by the Senate, she will succeed Chairman Ben Bernanke, whose term ends January 31.
But investors remained cautious as a partial U.S. government shutdown continued into a second week, with few signs of a breakthrough, ahead of an October 17 deadline to raise the limit on federal debt borrowing and avoid a default.
On Tuesday, President Obama repeated that he will only enter negotiations with congressional Republicans after the government is reopened and the U.S. debt ceiling is raised without conditions.
In the euro zone, data released on Wednesday showed that German industrial production rose 1.4% in August, above expectations for a 1% gain and was 0.3% higher on a year-over-year basis.
The euro rose to five-week highs against the pound, with EUR/GBP rising 0.50% to 0.8479 and was almost unchanged against the yen, with EUR/JPY dipping 0.03% to 131.43.
Sterling came under pressure after data showed that U.K. industrial production fell at the fastest rate in nearly a year in August, rising doubts over the outlook for third quarter growth.
Investors were awaiting the release of minutes from the Fed’s September meeting later Wednesday, after the U.S. central bank surprised markets with a decision to keep its stimulus program on track.