On Wednesday the euro traded steadily against the US dollar, as market players took positions in expectation of the congressional testimony by FED Chairman Ben Bernanke later in the day.
EUR/USD bounced off session lows at 1.3130, recorded at 5:58 GMT, to reach 1.3140 at 6:28 GMT. Support was expected at July 16th low, 1.3049, while resistance was to be encountered at July 11th high, 1.3205.
On Tuesday it was reported that Euro zone’s ZEW Economic Sentiment index rose by 2.2 to reach 32.8 during July, outstripping preliminary estimates of a reading of 31.8, while ZEW Current Situation indicator improved by 4.8 to -74.7 in July in comparison with June. The euro registered a steep jump against the greenback, after German Chancellor Angela Merkel said that Germany was doing everything possible in order to achieve stability in the single currency.
Meanwhile, FED Chairman Ben Bernanke is expected to deliver his semi-annual monetary-policy testimony on July 17-18th. He said in June that the central bank may begin to taper its 85 billion USD in monthly asset purchases by this year’s end and exit the stimulus program in mind-2014, if US economic growth meets policymakers’ objectives. US dollar declined last week against its major peers, following Bernankes statement that US economy was still in need of monetary easing.
The euro slightly advanced against the British pound and the Japanese yen, as EUR/GBP pair rose by 0.18% to 0.8701, while EUR/JPY added 0.08% to 130.55.
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