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Forex - EUR/USD hits 2-week low on U.S. debt ceiling uncertainty

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Investing.com - The euro was lower against the U.S. dollar on Thursday, as the greenback further recovered from losses suffered in wake of a successful congressional vote that avoided the fiscal cliff.

EUR/USD hit 1.3124 during late Asian trade, the session low and the lowest since December 14; the pair subsequently consolidated at 1.3147, shedding 0.3%.

The pair was likely to find support at 1.3065, the low of December 14 and resistance at 1.3293, Wednesday's high.

Investor confidence was boosted Wednesday after U.S. lawmakers passed a compromise bill to avoid the fiscal cliff, blocking a series of looming tax increases and spending cuts that could have pushed the U.S. economy back into a recession.

However, investors remained jittery over the longer term outlook, with negotiations on raising the U.S. debt ceiling still to come in February.

Elsewhere, the euro was lower against the yen and pound, with EUR/JPY down 0.38%, to hit 114.74 and EUR/GBP falling 0.18% to trade at 0.8097.

Later in the day, Germany is to release official data on unemployment change. Spain is to publish a similar report as well.

Meanwhile, the U.S. is to release a report on ADP nonfarm payrolls, as well as its weekly government report on initial jobless claims. In addition, the Federal Reserve is to publish the minutes of its most recent policy-setting meeting.

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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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