Investing.com - The euro held steady against the dollar on Tuesday as investors remained on the sidelines, eager for the Federal Reserve's Wednesday statement on monetary policy, anticipation of which overshadowed lukewarm U.S. wholesale pricing data
In U.S. trading, EUR/USD was up 0.02% at 1.2944, up from a session low of 1.2922 and off a high of 1.2967.
The pair was likely to find support at 1.2907, Monday's low, and resistance at 1.2980, Monday's high.
The Federal Reserve will announce its latest statement on monetary policy this Wednesday, and expectations for the U.S. central bank to cut its monthly bond-buying program to $15 billion from $25 billion kept the greenback firm against the euro and most other currencies in steady trading.
Investors were also hoping to see a timetable as to when U.S. interest rates may rise.
Many expect to see rate hikes kick in 2015, the timing of which remains unclear.
Federal Reserve officials have expressed concern about persistent slackness in the U.S. labor market, though some have said rate hikes could come sooner than markets are expecting if the economy continues to improve.
Elsewhere on Tuesday, official data showed that U.S. producer price inflation was flat last month, compared to expectations for a 0.1% rise after a 0.1% gain in July.
Core PPI, which excludes food, energy, and trade rose 0.1% in August, in line with expectations, after an increase of 0.2% in July.
Meanwhile in Europe, the ZEW index of German economic sentiment fell to a 21-month low of 6.9 for September from 8.6 in August, though beating market calls for a 4.8 reading, as tensions in Ukraine continue to fray nerves.
"The downward trend of the ZEW Indicator of Economic Sentiment for Germany has slowed significantly. However, the economic climate is still characterized by great uncertainty. The risk of a sanction spiral with Russia continues to exist and economic activity in the Eurozone remains disappointing," ZEW President Professor Clemens Fuest said in a statement.
"Last but not least, it is difficult to assess potential consequences of Scottish independence."
The ZEW eurozone economic index sentiment came in at 14.2 this month from 23.7 in August, missing expectations for a 21.3 reading.
Elsewhere, the euro was up against the pound, with EUR/GBP up 0.06% at 0.7977, and down against the yen, with EUR/JPY down 0.02% at 138.68.
On Wednesday, markets will move on the Federal Reserve's statement on monetary policy followed by Fed Chair Janet Yellen's press conference.
Elsewhere, the U.S. is to produce data on consumer prices, while the euro zone is to release revised data on consumer price inflation.