Investing.com - The euro fell to session lows against the stronger dollar on Wednesday as the dollar was boosted by news that Janet Yellen is to be nominated to head the Federal Reserve later in the trading day.
EUR/USD hit 1.3509 during European afternoon trade, the lowest since October 2; the pair subsequently consolidated at 1.3516, shedding 0.42%.
The pair was likely to find support at 1.3503, the low of October 2 and resistance at 1.3606, Tuesday’s high.
The White House said President Barack Obama will 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 dragged on into a second week, with few signs of progress towards a resolution ahead of an October 17 deadline to avoid a U.S. sovereign default.
On Tuesday President Obama repeated that he will be only willing to 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 was higher against the pound, with EUR/GBP rising 0.34% to 0.8467 and was almost unchanged against the yen, with EUR/JPY dipping 0.01% to 131.46.
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 1.3509 during European afternoon trade, the lowest since October 2; the pair subsequently consolidated at 1.3516, shedding 0.42%.
The pair was likely to find support at 1.3503, the low of October 2 and resistance at 1.3606, Tuesday’s high.
The White House said President Barack Obama will 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 dragged on into a second week, with few signs of progress towards a resolution ahead of an October 17 deadline to avoid a U.S. sovereign default.
On Tuesday President Obama repeated that he will be only willing to 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 was higher against the pound, with EUR/GBP rising 0.34% to 0.8467 and was almost unchanged against the yen, with EUR/JPY dipping 0.01% to 131.46.
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.