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Forex - EUR/USD slips lower ahead of ECB meeting

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Investing.com - The euro slipped lower against the dollar on Thursday ahead of the European Central Bank's monthly policy meeting later in the day, as concerns over political turmoil in Portugal continued to weigh.

EUR/USD hit 1.2988 during late Asian trade, the session low; the pair subsequently consolidated at 1.2992, shedding 0.11%.

The pair was likely to find support at 1.2922, Wednesday's low and a five-week low and resistance at 1.3077, Tuesday's high.

The ECB was expected to leave interest rates on hold on Thursday and to reiterate that an exit from loose monetary policy remains distant.

Concerns over political instability in Portugal continued to weigh on market sentiment following the resignation of country's foreign minister on Tuesday and the finance minister on Monday in protest over government austerity policies.

The political crisis raised doubts over the future of the country's coalition government and its ability to honor bailout commitments.

Investors were also looking ahead to Friday's U.S. nonfarm payrolls data, for further clues on when the Federal Reserve may decide to unwind its USD85 billion-a-month stimulus program.

Data on Wednesday showed that the U.S. private sector added 188,000 jobs in June, more than expectations for an increase of 160,000.

The euro edged higher against the pound, with EUR/GBP easing up 0.13% to 0.8523 and was lower against the yen, with EUR/JPY sliding 0.21% to 129.67.

The Bank of England was to conclude its first policy meeting under the leadership of new Governor Mark Carney later in the day, and was expected to keep benchmark interest rates unchanged.

Trade volumes were expected to remain light on Thursday, with markets in the U.S. closed for the Independence Day holiday.

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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.

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