Investing.com - The euro edged higher against the dollar on Wednesday as fresh doubts over the timing of a reduction in the Federal Reserve’s stimulus program weighed on the dollar.
During U.S. morning trade, EUR/USD edged up 0.12% to 1.3777, holding below the high of 1.3794 struck on Tuesday, the strongest level since October 29.
The pair was likely to find support at 1.3700 and resistance at 1.3831, the high of October 25 and a two year high.
The dollar softened amid uncertainty over whether the Fed will taper its USD85 billion-a-month asset purchase program at its December 17-18 policy meeting, despite last week’s stronger-than-forecast U.S. nonfarm payrolls report for November.
The dollar shrugged off news that U.S. Congressional leaders reached an agreement on a two year budget deal on Tuesday. Congress will still need to reach a deal to raise the U.S. debt ceiling in February 2014 in order to avert a default.
Demand for the shared currency continued to be underpinned as expectations for further monetary easing by the European Central Bank dimmed after the bank sounded less dovish than expected at last week’s policy meeting.
The euro received an additional boost after European Union finance ministers moved closer to an agreement on a European banking union on Tuesday, a measure which is seen as key in fending off a repeat of the region’s financial crisis.
The euro pulled away from five-year peaks against the yen, with EUR/JPY slipping 0.19% to 141.24, after rising as high as 142.15 on Tuesday, the highest level since October 2008.
Elsewhere, the dollar was lower against the yen, with USD/JPY falling 0.32% to 102.51, down from the six-month peaks of 103.37 struck on Tuesday.
During U.S. morning trade, EUR/USD edged up 0.12% to 1.3777, holding below the high of 1.3794 struck on Tuesday, the strongest level since October 29.
The pair was likely to find support at 1.3700 and resistance at 1.3831, the high of October 25 and a two year high.
The dollar softened amid uncertainty over whether the Fed will taper its USD85 billion-a-month asset purchase program at its December 17-18 policy meeting, despite last week’s stronger-than-forecast U.S. nonfarm payrolls report for November.
The dollar shrugged off news that U.S. Congressional leaders reached an agreement on a two year budget deal on Tuesday. Congress will still need to reach a deal to raise the U.S. debt ceiling in February 2014 in order to avert a default.
Demand for the shared currency continued to be underpinned as expectations for further monetary easing by the European Central Bank dimmed after the bank sounded less dovish than expected at last week’s policy meeting.
The euro received an additional boost after European Union finance ministers moved closer to an agreement on a European banking union on Tuesday, a measure which is seen as key in fending off a repeat of the region’s financial crisis.
The euro pulled away from five-year peaks against the yen, with EUR/JPY slipping 0.19% to 141.24, after rising as high as 142.15 on Tuesday, the highest level since October 2008.
Elsewhere, the dollar was lower against the yen, with USD/JPY falling 0.32% to 102.51, down from the six-month peaks of 103.37 struck on Tuesday.