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Forex - EUR/USD holds steady ahead of Fed announcement

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Investing.com - The euro held steady to lower against the dollar on Wednesday as investors waited on the sidelines for the Federal Reserve to announce its decision on interest rates and plans for its monthly USD85 billion bond-buying program.

In U.S. trading on Wednesday, EUR/USD was down 0.09% at 1.3345, up from a session low of 1.3338 and off from a high of 1.3364.

The pair was likely to find support at 1.3325, Tuesday's low, and resistance at 1.3385, Monday's high.

Market participants remained eager to see if the Fed announces plans to reduce the amount of bonds it buys each month, a stimulus tool that drives down borrowing costs to spur recovery, weakening the dollar in the process.

Ahead of time, investors remained camped out in safe-haven dollar positions, which softened the euro slightly.

Market participants largely ignored Commerce Department data revealed that U.S. building permits fell by 3.8% to 918,000 units in August from 954,000 in July. Analysts were expecting building permits to fall by 0.4% to 950,000 units last month.

The Commerce Department added that U.S. housing starts rose 0.9% to 891,000 units last month from a downwardly revised 883,000 units in July, missing expectations for a 3% increase to 917,000 units.

Elsewhere, the euro was down against the pound and down against the yen, with EUR/GBP trading down 0.46% at 0.8360 and EUR/JPY trading down 0.17% at 132.17.

The pound saw support after the release of the minutes of the Bank of England's September meeting, which showed that policymakers voted unanimously in favor of keeping the benchmark interest rate on hold at 0.5% and the size of the bank's asset purchase facility unchanged at GBP375 billion.

On Thursday, the U.S. is to release the weekly report on initial jobless claims, as well as the Philly Fed manufacturing index and data on existing 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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