Strong US Data Keeps Euro At Bay

The euro was steady at $1.3636 on Wednesday morning at 6:10 GMT after the strong US data out on Tuesday helped prop up the dollar.

The euro remained under pressure due to speculation that the European Central Bank is planning to ease further at next week's meeting.

US durable goods data came in stronger than expected while housing price data painted an encouraging picture.

However, the housing market remains a concern for the US as the recovery in that sector has been slow moving. The data out on Tuesday indicated improvement, but the report received mixed reviews as it showed that on an annual basis, house prices are increasing more slowly.

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Meanwhile, speculation about the ECB's next policy move grew after President Mario Draghi spoke in Portugal on Tuesday. Reuters reported that Draghi reiterated that the bank was aware of the dangers of low inflation for a prolonged period and that the ECB had the necessary tools to fight falling prices.

The bloc's recent inflation figures have been worrisome as they have fallen far below the ECB's two percent target and have come dangerously close to zero.

The eurozone will release its May flash inflation data next Tuesday which will provide some insight into the bank's policy meeting, set for Thursday. Most analysts expect to see a 0.7 percent year over year increase, something that will likely warrant ECB action.

For most, the question isn't if the bank will ease, but how. Markets are anxious to see how the bank is planning to intervene, with most expecting a cut to the bank's main interest rate as well as the deposit rate. If the bank does cut its deposit rate, it will mark the first time a major central bank has taken its deposit rate below zero.