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Forex - Euro at 8-month lows vs. dollar before euro zone PMI’s

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Investing.com -

Investing.com - The broadly weaker euro was trading at eight month lows against the dollar on Thursday as investors looked ahead to data on euro zone private sector activity later in the session.

EUR/USD hit lows of 1.3437, the weakest since November 21 and was last down 0.13% to 1.3445.

The pair was likely to find support at around the 1.3400 level and resistance at 1.3475.

The diverging monetary policy path between the European Central Bank and other central banks has weighed on the single currency since the ECB cut rates to record lows on June 5, in a bid to stave off the threat of deflation in the euro area.

Recent comments by ECB President Mario Draghi were seen as the latest sign that the bank is open to further monetary easing measures to help shore up the faltering recovery in the region.

In contrast, Federal Reserve Chair Janet Yellen indicated last week that interest rates may rise sooner if the recovery in the labor market continued.

The euro came under additional selling pressure amid concerns that a fresh round of sanctions against Russia could have a negative impact on the growth outlook for the currency bloc.

The euro fell to five month lows against the yen, with EUR/JPY sliding 0.14% to 136.43.

Elsewhere Thursday, the dollar was almost unchanged against the Japanese currency, with USD/JPY at 101.48, not far from Tuesday's highs of 101.59.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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