Investing.com - The euro slipped lower against the U.S. dollar on Tuesday, after downbeat euro zone inflation data and as the greenback strengthened broadly ahead of congressional testimony by Federal Reserve Chair Janet Yellen scheduled later in the day.
EUR/USD hit 1.1297 during European afternoon trade, the session low; the pair subsequently consolidated at 1.1324, edging down 0.09%.
The pair was likely to find support at 1.1223, the low of January 27 and resistance at 1.1449, the high of February 19.
Official data showed that euro zone consumer price inflation fell 0.6% last month, in line with expectations and unchanged from a preliminary estimate. Euro zone inflation declined by 0.2% in December.
The rate remains firmly below the European Central Bank's target of near but just below 2%.
Month-over-month, consumer prices dropped 1.6% last month, in line with forecasts and following a 0.1% decline in December.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose 0.6% in January, meeting forecasts and unchanged from an initial estimate.
Earlier Tuesday, Greece delivered a list of proposed economic reforms to Brussels after missing Monday’s midnight deadline. The reforms must now be approved by the country’s lenders in order for Greece to secure a four-month bailout extension.
Meanwhile, investors were looking ahead to testimony by Fed Chair Janet Yellen before the Senate Banking Committee in Washington later in the day for any indication on when U.S. interest rates may start to rise.
Last week’s minutes of the Fed’s January meeting were more dovish than expected, showing that some officials thought that raising rates too soon could weigh on the U.S. economic recovery, and that a deterioration in the global economic outlook could also pose a threat.
The euro was fractionally higher against the pound, with EUR/GBP up 0.08% to 0.7337.