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Forex - EUR/USD eases in early Asian trade

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Forexpros - The euro extended losses against the U.S. dollar Thursday, as a disasterous day on Wall Street prompted investors to seek safe-haven positions in treasury bills and the greenback.

EUR/USD hit 1.4112 during early Asian trade, the pair's highest since July 17; the pair subsequently consolidated at 1.4062, dropping 0.22%.

The pair was likely to find support at 1.4056, the day's low, and resistance at 1.4453, Monday's high.

Earlier in the day, the European Central Bank held its monthly news conference where ECB President Jean-Claude Triche announced that short-term interest rates would remain unchanged in August for the second straight month at 1.5%.

The Bank of England also maintained its rate at 0.50%, in line with market expectations.

On Wall Street, all three major indexes suffered steep drops with the Dow Jones falling to its lowest point since December of 2008.

The Dow Jones Industrial Average sank 4.3%, the Nasdaq Composite Index tumbled 5.1%, its worst percentage loss since January 2009, and the S%P 500 gave up 4.8%, its worst percentage drop since February 2009.

A U.S Labor Department report, released earlier Friday, that initial jobless claims fell by 1,000 to a seasonally adjusted 400,000 last week, did little to temper sell-offs on Wall Street.

Threats of debt insolvency in Italy and Spain contributed to a dealer exodus to treasuries and the U.S. dollar, as investors sought to cover equity positions.

The euro was lower against the British pound but up against the Japanese yen, with EUR/GBP dipping 0.01% to hit 0.8668 and EUR/JPY up by 0.30% to hit 111.51.

On Friday, the U.S. Department of Labor was scheduled to release its figures for the month of July on initial jobless benefit 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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