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Forex - Euro holds near multi-month lows vs. dollar, yen

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Investing.com -

Investing.com - The euro held steady near multi-month lows against the dollar and the yen on Wednesday, as the diverging monetary policy stance between the European Central Bank and other central banks continued to weigh on the single currencys.

EUR/USD was at trading at 1.3470, the weakest level since November 21.

The pair was likely to find support at around the 1.3400 level and resistance at 1.3500.

The euro has come under pressure 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.

Data on Tuesday showing that U.S. inflation rose 0.3% in June, in line with forecasts, added to the view that the economy is improving.

The euro fell to five-month lows against the yen, with EUR/JPY dipping 0.07% to 136.53.

Elsewhere Wednesday, the dollar slipped lower against the Japanese currency, with USD/JPY down 0.09% to 101.37.

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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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