Forexpros – The euro was steady against the U.S. dollar on Thursday, consolidating its position after rallying the previous day as a coordinated effort by major central banks to improve liquidity in financial markets bolstered risk appetite.
EUR/USD hit 1.3473 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3459, gaining 0.10%.
The pair was likely to find support at 1.3319, the low of November 23 and resistance at 1.3532, Wednesday’s high.
On Wednesday, six major central banks, including the Federal Reserve and the European Central Bank agreed to lower dollar swap rates to prevent a lack of liquidity in the global financial system.
In addition, China cut banks’ reserve-ratio requirements by 0.5% in an effort to boost liquidity and support the world’s second largest economy amid global market turmoil.
Earlier Thursday, official data showed that Chinese manufacturing activity contracted in November for the first time in nearly three years as export orders fell sharply.
The euro was also slightly higher against the pound, with EUR/GBP pushing up 0.15% to hit 0.8576.
Later in the day, the U.S. was to release its weekly report on initial jobless claims, while the Institute of Supply Management is to release data on manufacturing activity.
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