Investing.com - The euro was steady against the dollar on Wednesday as worries over a U.S. government shutdown continued, but the dollar remained supported following an upbeat U.S. manufacturing report on Tuesday.
EUR/USD hit 1.3507 during late Asian trade, the session low; the pair subsequently consolidated at 1.3520, dipping 0.04%.
The pair was likely to find support at 1.3470, the low of September 26 and resistance at 1.3587, Tuesday’s high and an eight-month high.
The dollar remained under pressure amid concerns that the first shutdown for 17 years would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
The dollar recovered from eight-month lows against the euro on Tuesday after a report showed that the U.S. manufacturing sector expanded at the fastest rate since April 2011 last month.
Elsewhere, the single currency was almost unchanged against the pound, with EUR/GBP inching up 0.02% to 0.8353 and was weaker against the yen, with EUR/JPY down 0.36% to 132.06.
In the euro zone, Italian Prime Minister Enrico Letta was due before parliament for a vote of confidence later Wednesday, after Silvio Berlusconi pulled his ministers out of the coalition government on Saturday.
Investors were also looking ahead to the outcome of the European Central Bank’s latest policy meeting and press conference with President Mario Draghi.
EUR/USD hit 1.3507 during late Asian trade, the session low; the pair subsequently consolidated at 1.3520, dipping 0.04%.
The pair was likely to find support at 1.3470, the low of September 26 and resistance at 1.3587, Tuesday’s high and an eight-month high.
The dollar remained under pressure amid concerns that the first shutdown for 17 years would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
The dollar recovered from eight-month lows against the euro on Tuesday after a report showed that the U.S. manufacturing sector expanded at the fastest rate since April 2011 last month.
Elsewhere, the single currency was almost unchanged against the pound, with EUR/GBP inching up 0.02% to 0.8353 and was weaker against the yen, with EUR/JPY down 0.36% to 132.06.
In the euro zone, Italian Prime Minister Enrico Letta was due before parliament for a vote of confidence later Wednesday, after Silvio Berlusconi pulled his ministers out of the coalition government on Saturday.
Investors were also looking ahead to the outcome of the European Central Bank’s latest policy meeting and press conference with President Mario Draghi.