Forex Pros – The euro was trading close to a seven-day low against the U.S. dollar on Thursday, amid concerns that the European Central Bank would not signal future rate hikes at its post-policy meeting press conference later in the day.
EUR/USD hit 1.4277 during European early afternoon trade, the pair’s lowest since June 28; the pair subsequently consolidated at 1.4290, sliding 0.19%.
The pair was likely to find short-term support at 1.4285, Wednesday’s low and a seven-day low and resistance at 1.4465, Wednesday’s high.
The ECB was expected to hike its key lending rate to 1.5% from 1.25% at its policy setting meeting later Thursday, after the bank’s head Jean-Claude Trichet said last week that the bank was in “strong vigilance mode.”
But the single currency remained vulnerable on the chance that the ECB would not flag further rate hikes this year at its post-policy meeting press conference, while concerns over the euro zone’s sovereign debt crisis persisted after ratings agency Moody’s downgraded Portugal’s credit rating to junk status.
Meanwhile, the euro was almost unchanged against the pound, with EUR/GBP dipping 0.02% to hit 0.8945.
Also Thursday, payroll processing firm ADP was to publish a report on U.S. non-farm payrolls, while the U.S. was to publish government data on initial jobless claims.
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