Shutterstock photo
Markets

Forex - Euro hits session lows against dollar

Shutterstock photo

Shutterstock photo

Investing.com - The euro fell to session lows against the dollar on Wednesday as concerns over the outlook for global growth supported demand for the safe haven dollar.

EUR/USD hit 1.3121 during European afternoon trade, the pair subsequently consolidated at 1.3128, shedding 0.35%.

The pair was likely to find support at 1.3051, the low of April 10 and resistance at 1.3200, Tuesday's high and the pair's highest since February 25.

Concerns over the outlook for the global economic recovery mounted after the International Monetary Fund cut its forecast for global growth for 2013 and 2014 on Tuesday.

The IMF trimmed its 2013 forecast for global growth to 3.3%, down from its January projection of 3.5% and cut its 2014 forecast to 4.0% from 4.1%.

The IMF said continued monetary stimulus by the Federal Reserve and the Bank of Japan was expected to continue to support growth in the U.S. and Japan, while the euro zone still posed the greatest threat to a recovery in the global economy.

Investors were looking ahead to a meeting of finance ministers and central bank heads from the Group of 20 nations on Thursday and Friday, amid speculation over whether Japan will face criticism over the BoJ's aggressive monetary easing program.

The euro erased gains against the yen, with EUR/JPY slipping 0.10% to 128.38, down from session highs of 129.74.

The U.S. was to release official data on crude oil stockpiles later in the day, while the Federal Reserve was to produce its beige book.

Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

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.

Other Topics

ForEx