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Forex - EUR/USD hits session lows in cautious trade

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Investing.com - The euro hit session lows against the U.S. dollar on Wednesday as investors remained cautious ahead of a European Central Bank meeting on Thursday, while weak economic data out of the euro zone also weighed on the single currency.

EUR/USD hit 1.3046 during European afternoon trade, the pair's lowest since Monday; the pair subsequently consolidated at 1.3053, slipping 0.21%.

The pair was likely to find support at 1.2996, the low of January 4 and resistance at 1.3138, Tuesday's high.

The ECB was widely expected to hold off cutting rates following Thursday's policy meeting, but some market participants expected the bank to flag the possibility of rate cuts later in the year.

Sentiment on the euro was hit after official data showed that German industrial production rose 0.2% November, compared to expectations for a 1% increase, underlining concerns over the outlook for the region's largest economy.

German industrial production fell at an annualized rate of 2.9% in November, in line with expectations.

Meanwhile, final data showed that the euro zone economy contracted 0.1% in the third quarter, in line with preliminary estimates.

The euro was almost unchanged against the pound, with EUR/GBP dipping 0.01% to 0.8146, but was higher against the yen, with EUR/JPY rising 0.37% to 114.28.

Later Wednesday, the U.S. was to publish official data on crude oil stockpiles.

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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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