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Forex - EUR/USD dips as concerns over EU debt woes linger

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Forexpros - The euro edged lower against the U.S. dollar on Thursday, as ongoing concerns over the sovereign debt crisis in the euro zone weighed on the single currency ahead of the release of key U.S. inflation data.

EUR/USD hit 1.4382 during late Asian trade, the daily low; the pair subsequently consolidated at 1.4407, slipping 0.13%.

The pair was likely to find support at 1.4250, the low of August 15 and short-term resistance at 1.4516, Wednesday's high and a three-week high.

European Central Bank Governing Council member Ewald Nowotny said that he was more concerned of entering a phase of slow growth and low inflation than the risks posed by high inflation.

"Another recession in terms of a 'double dip' is unlikely. However what shouldn't be excluded is that we will have on the economic side slower growth, that is, the upturn that we already had would lose dynamism," Nowotny said in an interview with Austrian newspaper Der Wirtschaftsblatt.

Nowotny said that it was too early to make a decision about introducing euro zone bonds, adding, "I want to warn against bringing up a new topic every week."

The euro was supported on Wednesday amid speculation the European Central Bank was buying Italian and Spanish government debt, in an effort to ease pressure on the region's third and fourth largest economies.

Elsewhere, the euro was fractionally higher against the pound, with EUR/GBP adding 0.06% to hit 0.8726.

Later in the day, the U.S. was to publish a flurry of economic data with government reports on initial jobless claims, consumer price inflation, existing home sales, manufacturing activity in Philadelphia as well as a report on natural gas stockpiles.

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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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