Forex Pros – The euro erased early losses against the U.S. dollar on Wednesday, rising to a daily high as the view that the Federal Reserve will keep interest rates low for a prolonged period weighed on the greenback.

EUR/USD clawed back up form 1.4774, the daily low to hit 1.4854 during European late morning trade, gaining 0.20%.

The pair was likely to find support at 1.4631, the low of April 27and resistance at 1.4901, Monday’s high and a 16-month high.

The euro found support ahead of the European Central Bank’s policy setting meeting on Thursday, with the bank expected to prepare markets for a possible rate hike in June.

The single currency shrugged off official data showing that euro zone retail sales fell sharply in March, pointing to weaker household demand.

Eurostat said retail sales in the 17 countries using the euro fell 1.0% month-on-month in March for a 1.7% year-on-year drop. Economists had expected a 0.1% monthly rise and a flat year-on-year reading.

The euro was also higher against the pound, with EUR/GBP easing up 0.08% to hit 0.8999.

Later in the day, the U.S. was to publish data on ADP non-farm payrolls while the U.S. Institute for Supply Management was to publish its non-manufacturing PMI.