Investing.com - The euro held steady against the U.S. dollar on Friday, still trading near seven-month highs, as markets were jittery amid renewed concerns over the handling of the U.S. debt situation.
EUR/USD hit 1.3507 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3527, easing 0.04%.
The pair was likely to find support at 1.3338, the low of September 18 and resistance at 1.3568, Thursday's high and a seven-month high.
The single currency rallied against the dollar after the Fed on Wednesday held back from reducing the USD85 billion pace of its monthly asset purchases.
Fed Chairman Ben Bernanke refused to commit to reducing bond purchases this year, saying the stimulus program was "not on a preset course."
But investors remained cautious as U.S. Republicans and Democrats were forced to quickly decide on how to continue funding the government and whether to increase the government's borrowing authority by raising the debt ceiling.
If President Barack Obama's administration and Republicans do not come to an agreement to raise the nation's borrowing cap before October, the U.S. Treasury may be able to avoid exceeding the USD16.7 trillion debt limit, which could send the country into default.
Separately, investors were eyeing the outcome of Germany's general election on Sunday., with Chancellor Angela Merkel looking to secure a third term.
The euro was higher against the pound with EUR/GBP adding 0.17%, to hit 0.8454.
Also Friday, official data showed that U.K. public sector net borrowing rose less-than-expected in August, rising by GBP11.5 billion after a downwardly revised 1.1% decline the previous month. Analysts had expected public sector net borrowing to rise by GBP12 billion last month.
EUR/USD hit 1.3507 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3527, easing 0.04%.
The pair was likely to find support at 1.3338, the low of September 18 and resistance at 1.3568, Thursday's high and a seven-month high.
The single currency rallied against the dollar after the Fed on Wednesday held back from reducing the USD85 billion pace of its monthly asset purchases.
Fed Chairman Ben Bernanke refused to commit to reducing bond purchases this year, saying the stimulus program was "not on a preset course."
But investors remained cautious as U.S. Republicans and Democrats were forced to quickly decide on how to continue funding the government and whether to increase the government's borrowing authority by raising the debt ceiling.
If President Barack Obama's administration and Republicans do not come to an agreement to raise the nation's borrowing cap before October, the U.S. Treasury may be able to avoid exceeding the USD16.7 trillion debt limit, which could send the country into default.
Separately, investors were eyeing the outcome of Germany's general election on Sunday., with Chancellor Angela Merkel looking to secure a third term.
The euro was higher against the pound with EUR/GBP adding 0.17%, to hit 0.8454.
Also Friday, official data showed that U.K. public sector net borrowing rose less-than-expected in August, rising by GBP11.5 billion after a downwardly revised 1.1% decline the previous month. Analysts had expected public sector net borrowing to rise by GBP12 billion last month.