Forexpros – The euro was steady against the U.S. dollar on Thursday, as investors awaited the outcome of the European Central Bank’s policy meeting later in the day, while a critical European Union summit also loomed.
EUR/USD hit 1.3423 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3419, edging up 0.06%.
The pair was likely to find support at 1.3332, Tuesday’s low and resistance at 1.3485, the high of December 5.
The euro was supported by expectations that the ECB would cut interest rates by 0.25% to 1% at its policy-setting meeting later in the day.
Meanwhile, European leaders were to begin a two-day summit to discuss proposed changes to EU treaties which would allow for greater fiscal integration and stricter enforcement of budgetary discipline in the single currency bloc, clearing the way for the ECB to play a bigger role in stabilizing euro zone bond markets.
But expectations for a breakthrough were dampened on Wednesday, after a senior German official expressed pessimism over the outcome of the summit.
The euro was fractionally higher against the pound, with EUR/GBP inching up 0.05% to hit 0.8540.
Also Thursday, the U.S. was to release official data on initial jobless claims.
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