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Forex - Euro steady near 23-month highs vs. dollar

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Investing.com - " The euro was steady close to 23-month highs against the dollar on Wednesday as slower than expected U.S. jobs growth in September reinforced expectations that the Federal Reserve will delay plans to reduce its stimulus program.

EUR/USD hit 1.3742 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.3778, dipping 0.02%.

The pair was likely to find support at 1.3710 and resistance at 1.3858, the high of November 9, 2011.

The dollar remained under heavy selling pressure amid expectations that the Fed will maintain the current pace of its stimulus program into next year, after Tuesday's disappointing U.S. nonfarm payrolls report.

The U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000, indicating that jobs growth had slowed even before the start of the recent 16-day U.S. government shutdown.

The euro touched session lows earlier after the European Central Bank announced details of new bank stress tests on Wednesday.

The review is to run over the course of a year and conclude before the ECB assumes its supervisory role over the bloc's banking sector at the end of 2014. The news sparked concerns over a revival of the crisis in the euro zone.

Market sentiment was also hit by concerns that China's central bank would tighten monetary policy to help control inflation in the world's second-largest economy.

Elsewhere, the single currency was higher against the pound, with EUR/GBP rising 0.42% to 0.8523 and was sharply lower against the stronger yen, with EUR/JPY dropping 0.84% to 134.80.

Sterling remained lower after Wednesday's minutes of the Bank of England's October meeting said the unemployment rate appears to be falling at a faster than expected rate as the "robust" recovery gains traction.

The bank also estimated that growth in the second half of the year would remain around 0.7% a quarter or a little higher, stronger than expected at the time of the August inflation report.

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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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