Investing.com - The euro was steady against the U.S. dollar on Thursday, trading close to a two-year low after the Federal Reserve indicated that the situation of the U.S. economy would have to worsen further before the central bank implements additional easing measures.
EUR/USD hit 1.2224 during late Asian trade, the daily low; the pair subsequently consolidated at 1.2235, easing 0.05%.
The pair was likely to find support at 1.2211, Wednesday’s low and a two-year low and resistance at 1.2323, the high of July 9.
In the minutes of its June policy-setting meeting, the Fed signaled that a further economic slowdown would bring growing support among policy makers for additional steps to spur growth.
While a few policymakers said the central bank should ease policy to move the economy toward its targets for full employment and stable prices, others indicated that more action could be warranted if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal.
Meanwhile, the euro remained under pressure after Spanish Prime Minister Mariano Rajoy announced on Wednesday EUR65 billion of new austerity measures, in an effort to meet new budget-deficit targets agreed with euro zone partners.
Market analysts warned that the fresh austerity measures were likely to drag Spain’s economy deeper in to a recession.
Elsewhere, the euro was steady against the pound with EUR/GBP inching up 0.01%, to hit 0.7897.
Later in the day, the euro zone was to produce official data on industrial production, while the U.S. was to release government data on unemployment claims and official data on import prices.
EUR/USD hit 1.2224 during late Asian trade, the daily low; the pair subsequently consolidated at 1.2235, easing 0.05%.
The pair was likely to find support at 1.2211, Wednesday’s low and a two-year low and resistance at 1.2323, the high of July 9.
In the minutes of its June policy-setting meeting, the Fed signaled that a further economic slowdown would bring growing support among policy makers for additional steps to spur growth.
While a few policymakers said the central bank should ease policy to move the economy toward its targets for full employment and stable prices, others indicated that more action could be warranted if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal.
Meanwhile, the euro remained under pressure after Spanish Prime Minister Mariano Rajoy announced on Wednesday EUR65 billion of new austerity measures, in an effort to meet new budget-deficit targets agreed with euro zone partners.
Market analysts warned that the fresh austerity measures were likely to drag Spain’s economy deeper in to a recession.
Elsewhere, the euro was steady against the pound with EUR/GBP inching up 0.01%, to hit 0.7897.
Later in the day, the euro zone was to produce official data on industrial production, while the U.S. was to release government data on unemployment claims and official data on import prices.