Investing.com - The euro slipped lower against the dollar on Wednesday, remaining under pressure after comments by a number of European Central Bank officials raised the prospect of further monetary easing.
EUR/USD hit session lows of 1.3805, and was last down 0.09% to 1.3812. The pair dropped to lows of 1.3748 on Tuesday, before recovering to 1.3825 at the close.
The pair was likely to find support at 1.3748, Tuesday’s low and resistance at 1.3846, Tuesday’s high.
The euro fell sharply after ECB governing council member and Bundesbank chief 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.
Separately, ECB Governing Council member Josef Makuch said the bank is prepared to take decisive steps if necessary, adding that many policy options are available, including adding liquidity.
The single currency bounced off lows after Weidmann said later in the day that the current euro exchange rate does not call for policy action.
The euro was also slightly lower against the yen, with EUR/JPY sliding 0.10% to 141.24, holding above Tuesday’s lows of 140.68.
Elsewhere, the dollar was almost unchanged against the yen, with USD/JPY inching up 0.05% to 102.31.
Data on Tuesday showed that U.S. consumer confidence improved more than expected in March. However, a separate report said that new home sales fell by the most in five months in February, indicating continued weakness in the housing sector.