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Forex - EUR/USD remains near 11-month lows, Fed minutes ahead

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Investing.com -

Investing.com - The euro remained close to 11-month lows against the U.S. dollar on Wednesday, as demand for the greenback remained broadly supported by Tuesday's upbeat U.S. housing data and investors eyed the minutes of the Federal Reserve's latest policy meeting.

EUR/USD hit 1.3275 during U.S. morning trade, the pair's lowest since September; the pair subsequently consolidated at 1.3288, shedding 0.24%.

The pair was likely to find support at 1.3105 and resistance at 1.3360, Tuesday's high.

The dollar found strong support after data on Tuesday showed that U.S. housing starts jumped 15.7% in July, while the number of new permits granted to home-builders also accelerated, pointing to underlying strength in the housing sector.

The data offset a report showing that U.S. consumer prices rose just 0.1% in July.

Investors were looking ahead to the minutes of the Fed's latest meeting due for release later Wednesday for further indications on the future direction of monetary policy.

Market watchers were also awaiting a speech by Fed Chair Janet Yellen in Jackson Hole on Friday.

Meanwhile, the euro remained under pressure after data last week showed that the euro zone economy stagnated in the second quarter, adding to fears that the recovery in the region is running out of steam.

The weak data added to pressure on the European Central Bank to implement fresh measure to shore up growth after it cut rates to record lows in June.

The euro was also lower against the pound, with EUR/GBP retreating 0.45% to 0.7980.

The pound strengthened after the minutes of the Bank of England's August policy meeting showed that two members voted in favor of a rate hike.

BoE bard members Martin Weale and Ian McCafferty said economic circumstances "were sufficient to justify an immediate rise in bank rate."

The remaining seven members voted to keep the rate on hold, saying early tightening could leave the economy "vulnerable to shocks", according to the report.

Separately, the Confederation of British Industry said that its index of industrial orders expectations climbed to 11 this month, from a reading of 2 in July, exceeding expectations for a rise to 4.

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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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