The euro dropped to fresh 11-month lows against the U.S. dollar on Wednesday, as the release of downbeat German consumer climate data added to expectations for further stimulus measures by the European Central Bank.
EUR/USD was steady at 1.3170 during late Asian trade, the pair’s lowest since September.The pair was likely to find support at 1.3105 and resistance at 1.3215, Tuesday’s high.Data showed that the Gfk German consumer climate index fell to 8.6 this month, from a reading of 9.0 in July. Analysts had expected the index to remain unchanged in August.
The weak data added to speculation that the ECB could implement fresh easing measures to bolster growth, after ECB President Mario Draghi said at Jackson Hole last week that the central bank is ready to take more unconventional action if needed to stimulate a sluggish euro zone economy.
Meanwhile, the dollar remained supported after the Conference Board on Tuesday said its index of consumer confidence rose to 92.4 this month, the highest since October 2007, from a reading of 90.3 in July.The data fuelled further optimism over the strength of the U.S. economic recovery.
http://www.investing.com/news/forex-news/forex—eur-usd-hits-fresh-11-month-lows-on-gfk-report-305776
Sean Seshadri Trading Tips @ March 2014 