Investing.com - The euro gave back earlier gains against the dollar on Tuesday as investors took positive data in both Europe and the U.S. in stride, eagerly awaiting European Central Bank President Mario Draghi to appear in public later this week and shed light on monetary policy.
In U.S. trading, EUR/USD was up 0.05% at 1.3800, up from a session low of 1.3785 and off a high of 1.3825.
The pair was likely to find support at 1.3673, the low from April 4, and resistance at 1.3830, Monday's high.
ECB President Mario Draghi warned earlier this month that further gains in the euro would trigger additional monetary easing to keep inflation rates in comfort zones.
The annual rate of euro zone inflation slowed to 0.5% in March, the lowest since November 2009.
Euro zone inflation has now been in the ECB’s danger zone of below 1% for six straight months, adding to pressure on policymakers to implement fresh stimulus measures to shore up the region's fragile recovery.
On Thursday, Draghi is due to speak in Amsterdam, and markets remained in standby mode ahead of then.
Earlier Tuesday, ECB Executive Board member Benoit Coeure said the bank still had room to lower its key interest rates.
“We have several instruments in the event that it is necessary to loosen monetary policy. We still have room to cut the key interest rate," he said.
Coeure added the strong euro "risks slowing the return of inflation to a level close to and below 2%, which is our definition of price stability."
Elsewhere in Europe, data revealed consumer confidence hit its highest level in six-and-a-half years
The European Commission reported earlier that consumer confidence improved to -8.70 in April, beating market calls for a -9.05 reading.
Meanwhile in the U.S., industry data revealed that existing home sales fell by 0.2% in March to 4.59 million units. beating expectations for 4.55 million units.
A separate report showed that the Richmond Fed manufacturing index jumped to 7 this month, from a reading of -7 in March, beating expectations for a reading of 0.
Elsewhere, the euro was down against the pound, with EUR/GBP down 0.16% to 0.8201, and up against the yen, with EUR/JPY up 0.02% at 141.58.
On Wednesday, the euro zone is to release preliminary data on manufacturing and service-sector activity, a leading indicator of economic health. Germany and France are also to release individual reports.
The U.S. is to publish reports on new home sales and manufacturing activity.