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Forex - EUR/USD edges down near 14-month trough

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Investing.com -

Investing.com - The euro edged lower against the U.S. dollar on Friday, re-approaching a 14-month trough as the Federal Reserve's latest policy statement continued to support the greenback.

EUR/USD hit 1.2885 during European morning trade, the session low; the pair subsequently consolidated at 1.2884, sliding 0.30%.

The pair was likely to find support at 1.2833, Thursday's low and a 14-month low and resistance at 1.2981, the high of September 17.

The dollar remained supported after the Fed on Wednesday cut its monthly bond-buying program by another $10 billion following its two-day policy meeting on Wednesday, keeping the program on track to finish next month.

Markets interpreted the Fed's statement as hawkish, despite policymakers maintaining language suggesting that rate hikes would not happen for a "considerable time."

Investors shrugged off data on Thursday showing that the Philadelphia Fed's manufacturing index deteriorated to a three-month low this month, as well as a report showing that U.S. building permits dropped by 5.6% last month and that housing starts tumbled by 14.4%.

The single currency came under some pressure on Thursday after the European Central Bank said it allotted €82.6 billion to 255 bidders in its new Targeted Long Term Refinancing Operation, or TLTRO. That was well below the €100 to €150 billion predicted by analysts.

The euro was trading near two-year lows against the pound, with EUR/GBP retreating 0.65% to 0.7831.

The pound strengthened broadly as Scotland overwhelmingly rejected independence after a record turnout of voters delivered a clear victory for the No campaign on Thursday.

Fifty-five percent of Scottish voters supported the "no" campaign compared with 45% who backed independence.

The decision prevented a rupture of a 307-year union with England.

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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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