Investing.com – The euro was down against the U.S. dollar on Wednesday, tumbling to a 5-day low after signs emerged that the second round of quantitative easing by the Federal Reserve may not be as large as anticipated.
EUR/USD hit 1.3772 during late Asian trade, the pair’s lowest since October 20; the pair subsequently consolidated at 1.3774, shedding 0.61%.
The pair was likely to find short-term support at 1.3697, the low of October 20 and resistance at 1.3981, Tuesday’s high.
Late Tuesday, a report in the Wall Street Journal said that the Fed is likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months. The report was contrary to rising market expectations of purchases in excess of USD 1 trillion.
The report said that the bank favored an approach that allowed them to adjust policy as the economic recovery unfolded, with the ability to make more purchases in the future if necessary.
The euro was also down against the pound, with EUR/GBP shedding 0.06% to hit 0.8741.
Later in the day, the U.S. was to publish data on durable goods orders and new home sales.
EUR/USD hit 1.3772 during late Asian trade, the pair’s lowest since October 20; the pair subsequently consolidated at 1.3774, shedding 0.61%.
The pair was likely to find short-term support at 1.3697, the low of October 20 and resistance at 1.3981, Tuesday’s high.
Late Tuesday, a report in the Wall Street Journal said that the Fed is likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months. The report was contrary to rising market expectations of purchases in excess of USD 1 trillion.
The report said that the bank favored an approach that allowed them to adjust policy as the economic recovery unfolded, with the ability to make more purchases in the future if necessary.
The euro was also down against the pound, with EUR/GBP shedding 0.06% to hit 0.8741.
Later in the day, the U.S. was to publish data on durable goods orders and new home sales.