Euro Trading Lower Ahead Of Inflation Data In The Euro-Zone

Euro Trading Lower Ahead Of Inflation Data In The Euro-Zone

For the 24 hours to 23:00 GMT, EUR rose 0.14% against the USD and closed at 1.3377.

The greenback came under pressure, after the Federal Reserve Chairman, Ben Bernanke urged the US lawmakers to lift the country’s borrowing limit to avoid a potentially disastrous debt default, warning that the economy was still at risk from political gridlock over the deficit. He further added that raising the legal borrowing limit was not the same as authorizing new government spending.

He also attempted to reassure investors that the Federal Reserve’s money-printing programs would not lead to higher inflation.

Earlier yesterday, the Federal Reserve Bank of San Francisco President, John Williams, said that he expected that the Fed would need to continue buying bonds “well into the second half of 2013.”

However, the Federal Reserve Bank of Atlanta President, Dennis Lockhart, stated that the bond buying program is not unbounded and would have an adverse effect on market functioning and financial stability, if continued for long.