Forex - EUR/USD slides after Beige Book

The U.S. dollar extended its gains against the euro in late U.S. trading Wednesday after the Federal Reserve’s Beige Book business survey said the world’s largest economy is growing at a "modest to moderate pace." 

In U.S. trading Wednesday, EUR/USD declined 0.35% to 1.3119. The pair was likely to find support at 1.3049, Tuesday’s low and resistance at 1.3205, the high of July 11. 

The Fed’s Beige Book business survey, which encompasses the central bank’s 12 regional banks, showed manufacturing expanded in most regions since the last report. The report showed modest growth across 11 districts with Dallas showing strong growth. 

Earlier Wednesday, Fed Chairman Ben Bernanke said the pace of the central bank’s bond purchases are not a “preset course” In prepared remarks released before his testimony to Congress later in the day, Fed Chair Bernanke said the pace of the central bank’s bond purchases are not a “preset course”.

"I emphasize that, because our asset purchases depend on economic and financial developments, they are by no means on a preset course," Bernanke said.

Bernanke reiterated that the Fed will continue to maintain its accommodative monetary policy for the foreseeable future. 

Elsewhere, EUR/JPY inched up 0.05% to 130.53 while EUR/GBP shed 0.75% to 0.8621.