Shutterstock photo
Markets

Forex - EUR/USD holds steady in cautious trade

Shutterstock photo

Shutterstock photo

Investing.com - " The euro held steady against the U.S. dollar on Friday, hovering near seven-and-a-half month highs as investors continued to monitor developments in the U.S. amid fears over the economic consequences of the recent U.S. government shutdown.

EUR/USD hit 1.3703 during European afternoon trade, the pair's highest since February 1; the pair subsequently consolidated at 1.3689, adding 0.10%.

The pair was likely to find support at 1.3581, the low of October 3 and resistance at 1.3711, the high of February 1.

The dollar remained under pressure amid fears over the impact of the government shutdown on the already fragile economic recovery, which could prompt the Federal Reserve to delay plans for scaling back its stimulus program until at least the start of next year.

The possibility of another debt crisis also loomed, as the temporary debt ceiling agreement reached early Thursday does not resolve the underlying budgetary issues dividing Republicans and Democrats.

The deal will fund the government until January 15 and raise the government borrowing limit until February 7. Both sides also agreed to talks over broad budget issues in an attempt to reach a longer-term deal by December 13.

Separately, risk sentiment found support after official data earlier showed that China gross domestic product grew by 7.8% in the third quarter, in line with expectations and up from 7.5% in the three months to June.

The data eased concerns over the strength of the recovery in the world's second-largest economy.

The euro was lower against the pound with EUR/GBP edging down 0.12%, to 0.8449.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com Stocks & Finance App for Android!

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.

Other Topics

ForEx