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Forex - EUR/USD edges lower, eyes on Fed statement

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Investing.com - The euro edged lower against the U.S. dollar on Wednesday, after downbeat German retail sales data, while investors remained cautious before the outcome of the Federal Reserve's policy meeting later in the day.

EUR/USD hit 1.3250 during late Asian trade, the session low; the pair subsequently consolidated at 1.3249, easing 0.09%.

The pair was likely to find support at 1.3166, the low of July 25 and resistance at 1.3381, the high of June 17.

Official data earlier showed that German retail sales declined 1.5% in June, disappointing expectations for a 0.4% rise, after an increase of 0.7% the previous month.

Markets were jittery ahead of the Fed's upcoming policy statement, as recent U.S. economic reports fuelled uncertainty on when exactly the central bank could begin to taper its bond-buying program.

On Tuesday, the Conference Board said its index of consumer confidence fell to 80.3 in July, from a reading of 82.1 the previous month, compared to expectations for a decline to 81.4.

A separate report showed that the Standard & Poor's/Case-Shiller Composite-20 house price index rose to an annualized rate of 12.2% in May, from 12.1% the previous month, compared to expectations for an increase to 12.4%.

Market participants were also looking ahead to the European Central Bank's monetary policy statement on Thursday.

The euro was almost unchanged against the euro with EUR/GBP inching up 0.01%, to hit 0.8705.

Later in the day, reports on consumer price inflation and the unemployment rate in the euro zone were to be released.

The U.S. was to produce economic growth data, as well as reports on non-farm employment change and manufacturing activity in Chicago.

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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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