Investing.com - The euro was trading at one-month lows against the firmer dollar on Wednesday as expectations that the Federal Reserve will soon pull back stimulus measures underpinned dollar demand.
EUR/USD hit 1.2961 during late Asian trade, the pair’s lowest since June 3; the pair subsequently consolidated at 1.2974, dipping 0.03%.
The pair was likely to find support at 1.2900 and resistance at 1.3056, the high of June 27.
Data on Tuesday showed that U.S. factory orders rose slightly more than expected in May, reinforcing the view that the economy is picking up.
The Commerce Department said U.S. factory orders rose by a seasonally adjusted 2.1%, compared to expectations for an increase of 2%.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls data, for further clues on when the Fed may decide to unwind its USD85 billion-a-month stimulus program.
The European Central Bank was expected to reiterate that an exit from loose monetary policy remains distant at its monthly meeting on Thursday, despite data on Monday indicating that the slump in the euro zone’s manufacturing sector is easing.
The euro edged lower against the pound, with EUR/GBP dipping 0.05% to 0.8558 and pushed higher against the yen, with EUR/JPY easing up 0.11% to 130.71.
The euro zone was to release official data on retail sales and revised data on service sector activity later in the day.
The U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims one day ahead of schedule, and data on the trade balance. In addition, the ISM was to produce a report on U.S. service sector activity.
