Forex - EUR/USD slips but supported ahead of ECB meeting

Forex Pros – The euro slipped against the U.S. dollar on Wednesday, but remained supported as the European Central Bank was expected to indicate it was ready to raise interest rates further after its policy meeting later in the week.

EUR/USD hit 1.4776 during late Asian trade, the daily low; the pair subsequently consolidated at 1.4825, dipping 0.02%.

The pair was likely to find support at 1.4631, the low of April 27and resistance at 1.4901, Monday’s high and a 16-month high.

The single currency remained supported ahead of the ECB’s policy setting meeting on Thursday, with the bank expected to prepare markets for a possible rate hike in June.

Elsewhere, Portugal announced Wednesday that it would receive a bailout package worth EUR78 billion from the European Union and the International Monetary Fund, with Prime Minister Jose Socrates saying the rescue package was a "good pact."

Meanwhile, the euro was slightly higher against the pound, with EUR/GBP easing up 0.03% to hit 0.8994.

Later in the day, the euro zone is to release official data on retail sales while the U.S. was to publish its ADP on non-farm payrolls report. Also Wednesday, the U.S. Institute for Supply Management was to publish its non-manufacturing PMI.




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