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Forex - EUR/USD hits 2-day low as Fed speech in spotlight

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Forexpros - The euro erased gains against the U.S. dollar on Thursday, falling to a two-day low amid concerns that a speech by U.S. Federal Reserve Chairman Ben Bernanke on Friday would not outline any fresh stimulus measures for the U.S. economy.

EUR/USD hit 1.4357 during U.S. morning trade, the pair's lowest since Tuesday; the pair subsequently consolidated at 1.4363, shedding 0.34%.

The pair was likely to find support at 1.4270, the low of August 18 and resistance at 1.4481, Wednesday's high.

Ahead of the speech, expectations mounted that Bernanke would not outline plans for a third round of quantitative easing, but would instead stress that the central bank remains ready to act if necessary.

Earlier Thursday, U.S. Labor Department said the number of people who filed for unemployment assistance in the U.S. last week unexpectedly rose by 5,000 to a seasonally adjusted 417,000, confounding expectations for a decline to 405,000.

The previous week's figure was revised up to 412,000 from 408,000.

Meanwhile, the euro was almost unchanged against the pound, with EUR/GBP inching up 0.01% to hit 0.8804.

Also Thursday, a report showed that the Gfk German consumer climate index for September dipped to 5.2 from a final reading of 5.3 in August, amid concerns that global economic weakness will affect the domestic economy.

The decline was in line with economists expectations.

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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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