Forexpros – The euro edged lower against the U.S. dollar on Wednesday, trading close to a one-year low as concerns over the handling of the debt crisis took over market sentiment ahead of a German bond auction.
EUR/USD hit 1.3023 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3032, edging down 0.13%.
The pair was likely to find support at 1.2956, the low of December 15 and resistance at 1.3118, the high of December 22.
Markets were jittery as Germany was preparing to sell EUR5 billion of 10-year government bonds later in the day.
Investors were also eyeing a key meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel on January 9 to advance discussions on tighter fiscal integration in the European Union.
Meanwhile, in the minutes of its December policy setting meeting, the Federal Reserve said it will begin later this month to publish the predictions of its senior officials about their own decisions, hoping to increase its influence over economic activity.
The bank added that “current and prospective economic conditions could well warrant additional policy accommodation, but they believed that any additional actions would be more effective if accompanied by enhanced communication.”
Elsewhere, the euro was lower against the pound with EUR/GBP retreating 0.16%, to hit 0.8326.
Later in the day, the euro zone is to publish official data on French consumer spending, followed by a preliminary report on consumer price inflation.
In the U.S., data is to be released on factory orders.
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