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IV:Forex - Euro close to 6-week lows vs. stronger dollar
 
Investing.com - The euro was steady close to six-week lows against the stronger dollar on Wednesday as expectations that the Federal Reserve will soon start to taper stimulus and concerns over tensions with Syria bolstered dollar demand.

EUR/USD hit 1.3162 during late Asian trade, the session low; the pair subsequently consolidated at 1.3165, dipping 0.04%.

The pair was likely to find support at 1.3137, Tuesday’s low and a six-week low and resistance at 1.3196, Tuesday’s high.

Data on Tuesday showed that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in August. The upbeat data reinforced the view that the Fed could start to unwind its stimulus program at its upcoming policy meeting on September 17-18.

The Institute for Supply Management said its purchasing managers’ index rose to 55.7 in August from a reading of 55.4 in July. Analysts had expected a reading of 54.0.

Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.

Meanwhile, concerns over a U.S. military intervention against Syria’s government weighed after the Republican House Speaker John Boehner endorsed President Obama's call for military strikes.

The euro edged lower against the pound, with EUR/GBP slipping 0.05% to 0.8459 and pushed higher against the yen, with EUR/JPY easing up 0.10% to 131.28.

The euro zone was to release data on retail sales later Wednesday, while the U.S. was to publish a report on the trade balance.
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