The euro was trading steadily and in proximity to highs unseen in 23 months against the US dollar on Wednesday, after a report showed that the US private sector has added fewer than projected jobs before the beginning of the 16-day partial government shutdown in the country.
EUR/USD touched a session high at 1.3793 at 3:15 GMT, also the pairs highest point since November 9th 2011, after which consolidation followed at 1.3773, dipping 0.06% for the day. Support was likely to be received at psychological level 1.3700, while resistance was to be met at November 9th 2011 high, 1.3858.
The greenback tumbled sharply against its major peers yesterday after the Department of Labor in the United States reported, that employers in the country added fewer than projected job positions in the month of September. The private sector added 148 000 jobs in September, below preliminary estimates of 180 000 positions, and following the revised 193 000 new jobs in August up from 169 000 previously. On the other hand, the rate of unemployment decreased to 7.2% in September, marking its lowest level since November 2008, from 7.3% in August.
Following these data points, the Federal Reserve Bank will probably maintain the current pace of its stimulus program until March next year, a survey of experts showed. The central bank, contrarily to expectations, abstained from reducing the scale of the 85 billion USD per month of asset purchases at its most recent policy meeting in September, as it wanted more evidence of economic recovery to be obtained.
Later in the day, the United States will release data on the indexes, gauging import prices and house prices.
Meanwhile, Euro zones index of consumer sentiment probably improved to a reading of -14.5 in October, or the lowest negative value since July 2011, according to analysts median estimates. In September the index came in at -14.9. The European Commission will release the official data later on trading Wednesday.
At the same time, a survey showed that French business confidence indicator improved in October, as managers of companies has estimated that their output rose over the past months, while optimism over performance in the upcoming months increased. Business confidence in the sector of manufacturing reached a reading of 98 in October in line with projections, up from 97 in September.
Elsewhere, the euro was gaining against the sterling, with EUR/GBP cross up 0.39% on a daily basis to trade at 0.8523 at 7:30 GMT. At 8:30 GMT Bank of England will release the minutes of its most recent meeting on policy, conducted on October 10th. All nine members of the Monetary Policy Committee (MPC) at Bank of England have probably voted unanimously in favor of retaining the benchmark interest rate and the size of monetary stimulus at their current levels. In the minutes after the release, it is expected that market volatility will be high. Additionally, EUR/JPY pair was falling 0.79% to trade at 134.20 at 7:39 GMT.
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