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Forex - EUR/USD hits 3-day low after Fed policy statement

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Forex Pros - The euro fell to a three-day low against the U.S. dollar on Thursday, after Federal Reserve Chairman Ben Bernanke indicated that further monetary stimulus was unlikely to occur, after the current program ends later this month.

EUR/USD hit 1.4284 during late Asian trade, the pair's lowest since June 20; the pair subsequently consolidated at 1.4300, shedding 0.38%.

The pair was likely to find support at 1.4126, the low of June 17 and resistance at 1.4422, the high of June 21.

Speaking after the Federal Open Market Committee's policy statement was released, Bernanke did not say outright that further easing would never occur, but made it clear that such a move was highly unlikely.

Bernanke said there was "uncertainty" about how much of the recent U.S. slowdown was permanent or transitory.

The Fed continues to expect that U.S. growth will pick up later in the year, but the Fed funds rate is to remain at its current record low of 0.25% for the foreseeable future.

The euro was also lower against the pound, with EUR/GBP shedding 0.26% to hit 0.8907.

Later Thursday, the euro zone was to release preliminary data on manufacturing and service sector activity, while European leaders were to hold the first day of a two-day economic summit in Brussels.

Meanwhile, the U.S. was to publish government data on initial jobless claims, as well as official data on new home sales.

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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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