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EURUSD reached its six-week lows after Fed minutes

ForexZig.com February 21, 2013
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The euro reached its six-week lows against the dollar in EURUSD today after the minutes of the Federal Reserve’s most recent meeting pointed that the bank could reduce its bond-buying program more recently than it was expected.

Currency pair EURUSD was traded at the level 1.3236 during late Asian trade, the pair’s lowest level since January 10. Later on, the currency pair consolidated at 1.3256, slipping 0.21%.

The pair was supposed to find support at 1.3155, bottom from January 1 and resistance at 1.3395, peak from Tuesday.

The minutes of the Fed’s January meeting indicated that policymakers discussed the slowing or stopping of bond purchases even before the job market improves, among concerns that the policy may cause instability in financial markets.

Investors are expecting manufacturing and service sector data out of the euro zone later in the session and remain cautious over the outlook for the economic recovery in the region lingered.

The euro was traded near to its 15-month highs against the pound, with EURGBP easing up 0.10% to the level 0.8728 and was lower against the yen, with EURJPY decreasing with 0.35% to 123.86.

Investors were expecting an announcement on nominees to replace outgoing Bank of Japan Governor Masaaki Shirakawa, whose policies Prime Minister Shinzo Abe has criticized for not going far enough to fight deflation.

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