Forex - EUR/USD dips as ECB rate hike now likely priced in
Investing.com
Published Apr 04, 2011 07:10AM ET
EUR/USD hit 1.4193 during European early afternoon trade, the daily low; the pair subsequently consolidated at 1.4214, slipping 0.13%.
The pair was likely to find support at 1.4114, last Thursday’s low and short-term resistance at 1.4281, the high of November 4.
Earlier in the day, official data showed that producer price inflation in the euro zone posted its sharpest annual gain for nearly two-and-a-half years in February, boosted by surging energy costs.
Eurostat said that producer prices rose 0.8% from January and were 6.6% higher than in February last year, the strongest annual increase since September 2008. Analysts had expected a 0.9% monthly gain and a 6.7% annual rise in producer prices.
Energy prices jumped 1.2% on the month for a 12.8% annual increase, Eurostat said.
The European Central Bank was widely expected to raise interest rates on Thursday for the first time since October 2008.
The euro was also lower against the pound, with EUR/GBP shedding 0.30% to hit 0.8808.
Later in the day, the Chairman of the Federal Reserve, Ben Bernanke was to speak.
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Written By: Investing.com
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