EUR/USD in steady trade after Euro zone economic reports

The euro traded steadily against the US dollar during late European session on Wednesday, following the reports on inflation and unemployment in the Euro zone, as markets awaited Federal Reserves policy statement later in the day.

EUR/USD slipped to a session low at 1.3248 at 10:40 GMT, after which the pair consolidated at 1.3259, down by a mere 0.02% for the day. Support was likely to be found at July 25th low, 1.3166, while resistance was to be encountered at June 11th high, 1.3318.

In the Euro zone, the Flash Harmonized Index of Consumer Prices (HICP) remained stable at 1.6% in July on annual basis in consonance with projections. Additionally, the number of unemployed people in the Euro region decreased to 19.27 million in June from 19.29 million in May, marking the first drop since April 2011. Unemployment rate in the single currency region, however, remained at the record high level of 12.1% in June, as this was the fourth consecutive month, during which the indicator stood at that level. Experts had projected an increase to 12.2%. Given these results, some experts do not expect that the European Central Bank will introduce any change in its monetary policy at its meeting on Thursday.

Earlier today a separate report said that the number of unemployed people in Germany dropped by 7 000 during July, significantly exceeding preliminary estimates of a drop by 1 000, after in June the number decreased by 13 000. Unemployment rate decreased to 12.1% in June from 12.2% in May. German retail sales recorded an unexpected drop in June, by 1.5% on a monthly basis, confounding estimates of a rise by 0.2%, while in May sales rose by 0.7%, according to revised data.

Meanwhile, investors were expecting the upcoming policy statement by the Federal Reserve Bank in search for clues on the timing of Quantitative Easings slow down and the series of vital economic data out of the United States.

Elsewhere, the euro was trading higher against the British pound, as EUR/GBP cross added 0.20% to 0.8721.