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Forex - EUR/USD little changed in quiet trade

Published 08/27/2012, 10:25 AM
EUR/USD
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EUR/GBP
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Investing.com - The euro was fractionally higher against the U.S. dollar in quiet trade on Monday, as markets looked ahead to a speech by Federal Reserve Chairman Ben Bernanke in Jackson Hole, Wyoming later in the week.

EUR/USD hit 1.2534 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.2521, easing up 0.08%.

The pair was likely to find support at 1.2430, the low of August 22 and resistance at 1.2588, last Thursday’s high and a seven-week high.

Fed Chairman Ben Bernanke was due to speak at an annual symposium in Jackson Hole on Friday, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.

Last Wednesday’s minutes of the U.S. central bank’s August meeting indicated that many policymakers may be leaning towards additional quantitative easing.

Investors also remained hopeful that the European Central Bank will implement policy measures to help stabilize the euro zone's sovereign debt markets at its next policy meeting in early September.

Earlier Monday, data showed that German business sentiment declined for a fourth successive month in August, underlining concerns over the impact of the long running debt crisis on the region’s largest economy.

The German research institute Ifo said its Business Climate Index came in at 102.3 this month, from a downwardly revised 103.2 in July, compared to expectations for a reading of 102.6.

The current assessment index fell less-than-expected, ticking down to 111.2 from 111.6 last month, slightly better than expectations for a reading of 110.8.

The euro was slightly higher against the pound and the yen, with EUR/GBP rising 0.11% to 0.7922 and EUR/JPY up 0.16% to 98.57.

Trade looked likely to remain quiet on Monday, with no significant economic data releases on the calendar, while volumes were thin as markets in the U.K. remained closed for a bank holiday weekend.


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