EUR Ended Wednesday Mostly Lower Against The Majors Currencies

Euro Down as ECB Says Loan Growth Slowed Further, Money Supply Contracted

The euro ended Wednesday mostly lower against the majors following a report from the European Central Bank showing that consumer and business loans in the region Euro-zone posted their third straight annual decline in November.

Additionally, M3 money supply, a gauge of future inflation, fell by 0.2 percent in November, marking the first decline since recordkeeping began in January 1981.

All told, the data suggests that the ECB’s liquidity programs have done little to boost credit supply and demand, which limits their ability to normalize monetary policy by raising interest rates in 2010.

From a technical perspective, EURUSD isn’t likely to see significant market movement as trading volumes should remain low ahead of New Year’s Day.

Resistance for the pair looms above at 1.4428 and 1.4506 (R2 and R3 daily pivots), while key support sits at 1.4210 (200 SMA).