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Forex - Euro remains weaker against dollar

Published 03/27/2014, 03:39 AM
Euro weaker amid ECB stimulus concerns
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Investing.com - The euro remained weaker against the dollar on Thursday after European Central Bank officials indicated earlier in the week that they are considering fresh policy options to stave off the risk of deflation in the region.

EUR/USD slipped 0.10% to 1.3772, not far from the lows of 1.3748 struck on Tuesday.

The pair was likely to find support at 1.3748 and resistance at 1.3800.

The euro weakened after ECB governing council member and Bundesbank head Jens Weidmann said Tuesday that a negative deposit rate could be an appropriate way to address the impact of strong gains in the euro.

He also said it was not out of the question for the ECB to buy loans or other assets from banks to fight deflation, indicating a softening of the Bundesbank’s stance on quantitative easing.

The same day ECB President Mario Draghi that the central bank stood ready to act if inflation slipped lower than the ECB expected.

Investors were looking ahead to next week’s euro zone inflation report, scheduled for release on Monday, ahead of the bank’s upcoming policy meeting later in the week.

EUR/JPY touched two-week lows of 140.28 on Thursday and was last trading at 140.69, unchanged for the day.

Elsewhere, the dollar edged higher against the yen, with USD/JPY rising 0.11% to 102.16.

The dollar remained supported after upbeat U.S. durable goods orders figures on Wednesday indicated that economy is gaining momentum in the wake of a weather induced slowdown.

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