Forexpros – The euro edged higher against the U.S. dollar on Wednesday, easing off a seven-week low as markets rebounded, following a steep slide on the back of ongoing concerns over the euro zone’s debt crisis and a renewed recession in the U.S.
EUR/USD hit 1.4079 during late Asian trade, the daily high; the pair subsequently consolidated at 1.4071, gaining 0.51%.
The pair was likely to find support at 1.3971, Tuesday’s low and a seven-week low and resistance at 1.4172, Monday’s high.
Market sentiment improved after data on Tuesday showed that activity in the U.S. service sector expanded unexpectedly last month.
But the single currency remained vulnerable amid uncertainty over the implementation of austerity measures in Italy and Greece and increasing German opposition to boosting euro zone bailout efforts.
Meanwhile, the euro was trading close to its newly established ceiling against the Swiss franc, with EUR/CHF dipping 0.12% to hit 1.2052.
The euro edged higher against the pound, with EUR/GBP rising 0.21% to hit 0.8798.
Later in the day, Germany’s constitutional court was to hand down a ruling on the legality of the latest bailout for Greece. The country was also to produce official data on industrial production.
In addition, Federal Reserve Bank of Chicago President Charles Evans was to speak. The Fed was also to publish its beige book, which looks at regional economic conditions.
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