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Forex - Euro down as Japan intervention broadly lifts dollar

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Forexpros - The euro was down against the U.S. dollar on Thursday, sliding to a daily low after Japanese officials intervened in the currency market to stem the yen's steep gains, lifting the greenback across the board.

EUR/USD hit 1.4266 during late Asian trade, the daily low; the pair subsequently consolidated at 1.4276, shedding 0.33%.

The pair was likely to find support at 1.4142, Wednesday's low and a two-week low and resistance at 1.4453, the high of August 1.

Japanese Finance Minister Yoshihiko Noda confirmed earlier that the country intervened to curb the yen's gains for the first time since March, amid concerns that the yen's appreciation would hinder the largely export-based economy's recovery from a downturn sparked by the March 11 earthquake and tsunami.

In addition, the Bank of Japan announced additional monetary easing in order to support the Finance Ministry's intervention to weaken the yen.

Elsewhere, the outlook for global growth remained downbeat after a report on Wednesday showed activity in the U.S. services sector declined unexpectedly in July, falling to the lowest level since February 2010.

A separate report showed that U.S. factory orders declined more-than-expected in June.

Meanwhile, the euro was higher against the pound, with EUR/GBP rising 0.14% to hit 0.8729.

Later in the day, the European Central Bank was to announce its benchmark interest rate. The announcement was to be followed by a closely watched press conference. Also Thursday, the U.S. was to publish government data on initial jobless claims.

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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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