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Forex - EUR/USD lower in early Asian trade

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Forexpros - The euro was broadly lower against the U.S. dollar Tuesday, as the greenback rebounded from declines suffered in the wake of the Federal Reserve meeting where the central bank painted a less than rosy picture of U.S. economic prospects.

EUR/USD hit 1.4398 in early Asian trade, the pair's highest since Monday; the pair subsequently consolidated at 1.4358, dropping 0.12%.

The pair was likely to find support at 1.4255, the low of July 28, and resistance at 1.4426, August 7th's high.

Earlier Tuesday, the European Central Bank purchased Italian and Spanish bonds for a second day in an attempt to aid debt threatened euro-zone members. Spain's 10-year yield fell below 5% for the first time since December.

The ECB's previous round of bond buys failed to protect Ireland and Portugal from additional financial aid.

Meanwhile, the U.S. Federal Reserve voted to sustain an easy money policy and extend current interest rates until the middle of 2013. The Fed revised its June meeting forecast for U.S. economic growth saying it expected a much slower rate of recovery.

Wall Street shares briefly sagged following the Federal Reserve's statement but bounced back strongly from Monday's 6.5% plunge, the sixth worst performance ever for U.S. stocks.

The Dow Jones Industrial Average added 3.98%, the Nasdaq Composite Index jumped 5.3%, and the S&P 500surged 4.74%.

The euro was lower against the British pound but up against the Japanese yen, with EUR/GBP sliding 0.07% to hit 0.8803, and EUR/JPY up by 0.02% to hit 110.62.

German consumer price index data for July, as well as French industrial production figures were due for release on Wednesday.

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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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