Forexpros – The euro edged higher against the U.S. dollar on Wednesday, buoyed by speculation that the European Central Bank could take fresh easing action at its policy meeting later in the day, to help stabilize markets.
EUR/USD hit 1.2517 during late Asian trade, the session high; the pair subsequently consolidated at 1.2486, gaining 0.28%.
The pair was likely to find support at 1.2385, the low of June 6 and resistance at 1.2541, Tuesday’s high and a one-week high.
The euro was supported by expectations that the ECB could cut rates in a bid to help stabilize market sentiment.
Sentiment on the euro remained fragile after Spain warned on Tuesday that it was effectively shut out of credit markets, fuelling fears that Madrid will be forced to seek a bailout, while uncertainty over the outcome of Greek election on June 17 also weighed.
Overall market sentiment was bolstered by data showing that Australian economic growth outstripped expectations in the first quarter, with gross domestic product expanding 1.3%, well above forecasts for a gain of 0.5%.
The euro inched higher against the pound, with EUR/GBP rising 0.04% to hit 0.8096 and posted gains against the yen, with EUR/JPY adding 0.44% to hit 98.46.
Later in the day, Germany was to produce official data on industrial production. The ECB rate announcement was to be followed by a press conference with bank head Mario Draghi to discuss the monetary policy decision and the economic outlook for the region.
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