Forexpros – The euro edged lower against the U.S. dollar in quiet trade on Wednesday, with markets in the U.S. closed for a holiday, as investors looked ahead to the outcome of European Central Bank policy meeting on Thursday.
EUR/USD hit 1.2582 during late Asian trade, the session low; the pair subsequently consolidated at 1.2595, slipping 0.10%.
The pair was likely to find support at 1.2518, the low of June 22 and resistance at 1.2692, last Friday’s high.
The ECB was widely expected to announce an interest rate cut to 0.75% from the current record low 1.00% to help bolster growth in the region, following a recent string of weak economic data.
Data on Monday showed that the unemployment rate in the bloc rose to a record in May, while the manufacturing sector remained firmly in contraction territory in June.
Investors were also awaiting Friday’s U.S. nonfarm payrolls report, amid speculation that the Federal Reserve could implement a third round of quantitative easing to shore up the economy, which has been hit by the ongoing crisis in the euro zone.
Trade volumes were expected to remain light on Wednesday, with market in the U.S. closed for the Independence Day holiday.
The euro was little changed against the pound, with EUR/GBP dipping 0.01% to 0.8034 and edged lower against the yen, with EUR/JPY losing 0.14% to trade at 100.44.
Later in the session, the euro zone was to publish official data on retail sales, as well as revised data on service sector activity.
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