EUR/USD rises as FX traders digest Fed remarks on stimulus

NEW YORK (Forex News Now) – The euro rose against the dollar on Wednesday, approaching an 8-month high, as FX traders digested comments on further stimulus measures from the U.S. Federal Reserve.

In early European currency market trading, EUR/USD hit 1.3957, up 0.23 on the day and close to the 8-month high of Oct. 7, 1.4029.

The central bank moved a step closer on Tuesday to pumping more money into the faltering U.S. economy, after a majority key policymaking panel agreed to consider steps to stimulate demand.

The Federal Open Market Committee “wanted to consider further the most effective framework for calibrating and communicating any additional steps to provide such stimulus,” according to minutes from the Fed’s last meeting in September.

According to EUR USD analysis, EUR/USD was likely to touch support around the low of Oct. 5, 1.3637, and encounter resistance around 1.4029.

Meanwhile, the EU statistics agency was due later Wednesday to publish an important report on industrial production in the euro zone. Eurostat, the agency, was expected to say production rose 0.7 percent in August from a month earlier, two online FX trading news outlets reported.

Elsewhere, the euro climbed versus the yen: EUR/JPY traded at 114.28, down 0.43 percent, according to intraday analysis.