Euro hits 1-week low ahead of economic data

The euro dropped against the dollar on Wednesday recording its lowest level for the week, affected by the ongoing impact of yesterday’s report issued by Reuters news agency regarding the European Central Bank (ECB) studying to buy corporate bonds, along with focusing on the expectations of euro zone and US.

The report pointed out that the ECB is currently studying purchasing corporate bonds that will expand stimulus programs that support the euro zone economy, which has pressured the euro for the second consecutive day.

In the US, markets are awaiting further positive economic data that are an indication of the economy strength, and that might prompt the Federal Reserve to raise interest rates on time.

The dollar formed considerable pressure on the euro while anticipating the U.S. inflation data on Wednesday.

Investors focus is still on the Bank of England, as it will be releasing on Wednesday its minutes of the latest meeting, which kept the monitory policy unchanged, while investors hope to pick up any signal on when to raise the low interest rates.

The euro is still subject to releasing the U.S. data and ECB meeting minutes, as Reuters report still pressure the euro.

EUR/USD technical analysis .