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Forex - Euro steady close to 4-month lows against dollar

Published 06/12/2014, 02:40 AM
Euro near 4-month trough against dollar
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Investing.com - The broadly weaker euro was hovering within striking distance of four-month lows against the greenback on Thursday as the single currency remained under pressure after the European Central Bank’s monetary easing last week.

EUR/USD was steady at 1.3533, not far from the four-month low of 1.3502 set last Thursday.

The pair was likely to find support at 1.3500 and resistance at 1.3601, Tuesday’s high.

The euro has weakened broadly as euro zone bonds rallied in recent sessions, highlighting the diverging monetary policy stance between the ECB and other central banks.

The ECB cut all its main rates to record lows on Thursday and for the first time imposed negative deposit rates on commercial lenders, in a bid to stave off the risk of deflation in the euro zone.

The euro was also close to four month lows against the yen, with EUR/JPY at 138.12, after falling to lows of 137.86 on Wednesday, the weakest since February.

The yen was boosted after the World Bank cut its forecast for global economic growth to 2.8% for the year from 3.2% in January on Wednesday, warning that an unusually harsh winter along with the conflict in Ukraine would act as a drag on growth.

Elsewhere, the dollar was little changed against the yen, with USD/JPY at 102.06, holding above the more than one-week low of 101.85 struck in the previous session.

Market participants were looking ahead U.S. data on jobless claims and retail sales later in the trading day, after recent economic reports have indicated that the economy is shaking off the effects of the severe winter.

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