Forexpros – The euro remained lower against the U.S. dollar on Thursday, ahead of a key policy-setting meeting of the European Central Bank later in the day amid expectations that the bank may signal a pause in monetary tightening.
EUR/USD hit 1.4042 during European late morning trade, a fresh daily low; the pair subsequently consolidated at 1.4046, shedding 0.36%.
The pair was likely to find support at 1.3991, Wednesday’s low and resistance at 1.4172, Monday’s high.
Ahead of the meeting, speculation mounted that the ongoing sovereign debt crisis in the single currency bloc and the bleak outlook for global growth would prompt ECB policymakers to halt the bank’s monetary tightening cycle, after hiking rates twice earlier this year.
Meanwhile, the dollar was supported ahead of a speech to Congress by U.S. President Barack Obama, who was expected to announce federal spending of around USD300 billion to boost job creation and shore up the faltering U.S. economy.
The euro was also lower against the pound, with EUR/GBP shedding 0.26% to hit 0.8792.
Also Thursday, the U.S. was to publish its weekly report on initial jobless claims, while Federal Reserve Chairman Ben Bernanke was to speak. His comments would be closely watched for clues to the future possible direction of monetary policy.
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