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Forex - EUR/USD dips on dollar buying by Japanese importers

Published 02/10/2011, 02:51 AM
EUR/USD
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EUR/GBP
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Investing.com – The euro was down against the U.S. dollar on Thursday, dropping to a daily low, on increased dollar buying by Japanese life insurance firms and importers.

EUR/USD hit 1.3668 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3675, shedding 0.41%.

The pair was likely to find support at 1.3571, Tuesday’s low and resistance at 1.3824, the high of February 3.

The euro had been boosted on Wednesday as U.S. Treasury yields fell while strong foreign demand at a 10-year U.S. bond auction also undermined the greenback.

Also Wednesday, Federal Reserve Chairman Ben Bernanke, testifying in Congress, gave no indication that the central bank would cut short its bond buying programme, or raise interest rates down the road.

Bernanke acknowledged renewed momentum in the economy, saying a drop in the jobless rate to 9% was grounds for optimism while adding that hiring was still anaemic.

The euro was also down against the pound, with EUR/GBP shedding 0.29% to hit 0.8503.

Later in the day, the U.S. was to release its key weekly report on initial jobless claims and in the euro zone France and Italy were both to produce data on industrial production, while the European Central Bank was to publish its monthly bulletin.

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