Forexpros – The euro fell to a two-week low against the broadly stronger U.S. dollar on Wednesday, after the minutes of the Federal Reserve’s most recent meeting indicated that the bank intends to hold off implementing further easing measures.
EUR/USD hit 1.3184 during late Asian trade, the pair’s lowest since March 22; the pair subsequently consolidated at 1.3205, shedding 0.22%.
The pair was likely to find support at 1.3133, the low of March 22 and resistance at 1.3238, the session high.
The minutes of the Fed’s March meeting showed that policymakers will refrain from launching a third round of quantitative easing unless the rate of growth falters or inflation drops below the central bank’s 2% targeted rate.
In the euro zone, concerns that Spain will be the next country to require a bailout mounted ahead of an auction of government debt later in the day.
Market participants were also looking ahead to the European Central Bank’s policy meeting Wednesday, although the bank was expected to leave interest rates unchanged at 1%.
The euro was lower against the pound and the yen, with EUR/GBP dipping 0.05% to hit 0.8311 and EUR/JPY shedding 0.37% to hit 109.16.
Later Wednesday, Germany was to release official data on retail sales.
Meanwhile, the U.S. was to publish a report non-farm employment change, as well as data from the Institute of Supply Management on service sector activity. In addition, U.S. Treasury Secretary Timothy Geithner was due to speak.
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