EUR/USD: Euro steady vs. dollar after weak Ifo and Draghi comments

The euro was steady against the dollar on Wednesday, holding above 14 month lows after data showed that business confidence in Germany continued to deteriorate this month and after the European Central Bank reiterated its commitment to accommodative monetary policy.

EUR/USD was trading at 1.2850, hovering just above Monday’s 14-month trough of 1.2815. The pair was likely to find support at 1.2815 and resistance at around the 1.29 level.

The euro was little changed after a report showed that Germany's Ifo business confidence index deteriorated for the fifth successive month in September. The Ifo economic institute's business climate index fell to 104.7 from 106.3 in August. It was the lowest level since April 2013 and much weaker than economists’ forecasts for 105.7.

Earlier Wednesday, ECB President Mario Draghi said the bank will keep its monetary policy “accommodative” for as long as needed, and will use every tool at its disposal to fight deflation.

“Monetary policy will remain accommodating for a long time and I can tell you that the Governing Council is unanimous in committing itself to using the tools at its disposal to bring inflation back to just under 2%.”

Elsewhere, the euro was lower against the yen, with EUR/JPY down 0.26% to 139.51.