Investing.com - The euro edged moderately lower against the dollar on Tuesday, as downbeat data on German economic sentiment weighed and as markets awaited the Federal Reserve's highly-anticipated policy statement due on Thursday.
EUR/USD hit 1.1284 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.1309, easing 0.08%.
The pair was likely to find support at 1.1169, the low of September 10 and resistance at 1.1375, Monday's high.
The single currency came under pressure after data earlier showed that the ZEW economic sentiment index for Germany fell to 12.1 in September from 25.0 the previous month. Analysts had expected the index to hit 18.4 this month.
In the U.S., data on Tuesday showed that retail sales rose 0.2% in August, compared to expectations for an increase of 0.3%, Retail sales gained 0.7% in July, whose figure was revised from a previously estimated 0.6% uptick.
Core retail sales, which exclude automobiles, added 0.1% last month, confounding expectations for a 0.2% rise. Core retail sales increased by 0.6% in July, whose figure was revised from a previously estimated 0.4% gain.
Separately, the Federal Reserve Bank of New York said its Empire State manufacturing index improved to minus 14.67 this month from minus 14.92 in August, compared to expectations for a reading of minus 0.75.
Data also showed that U.S. industrial production fell 0.4% in August, compared to expectations for a 0.2% downtick. Industrial production increased by 0.9% in July, whose figure wad revised from a previously estimated 0.6% gain.
Sentiment on the greenback remained vulnerable amid concerns that mixed U.S. economic reports and recent volatility in global financial markets will prompt the U.S. central bank to refrain from hiking interest rates on Thursday.
The euro was higher against the pound, with EUR/GBP adding 0.23% to 0.7353.
Also Tuesday, the U.K. Office for National Statistics reported that the consumer price index rose 0.2% last month, in line with expectations. Year-on-year, U.K. consumer prices were flat in August, in line with expectations.
Core CPI, which excludes food, energy, alcohol and tobacco, rose at an annualized rate of 1.0% in August, as expected.