Investing.com - The euro was at eight month lows against the broadly stronger dollar on Wednesday as investors looked ahead to a preliminary report on U.S. second quarter growth and the outcome of the Federal Reserve’s latest policy meeting later in the session.
EUR/USD was trading at 1.3405, the lowest level since November 21.
The pair was likely to find support at around 1.3350 and resistance at 1.3445.
The U.S. was to release the preliminary estimate on second quarter gross domestic product growth later Wednesday, which was to be followed by the conclusion Fed policy meeting later in the day.
Investors were also awaiting the U.S. nonfarm payrolls report for July on Friday.
Earlier this month Fed Chair Janet Yellen said that rates could rise sooner if the recovery in the labor market continued.
The dollar has strengthened in recent sessions as economic data indicated that the recovery is gaining traction. A report by the Commerce Board on Tuesday showed that U.S. consumer confidence rose to the highest level in seven years this month.
The euro remained under heavy selling pressure amid concerns over the divergence in monetary policy between the European Central Bank and its major peers.
The euro zone was to release what would be closely watched data on consumer prices on Thursday, amid concerns over persistently low levels of inflation in the currency bloc.
The euro was little changed against the yen, with EUR/JPY at 136.94, holding above Thursday’s five month lows of 136.35.
Elsewhere Wednesday, USD/JPY was at 102.15, the highest since July 7.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was at 81.32, the highest since early February.