Investing.com - The euro held gains against the dollar on Tuesday as jitters over whether the Federal Reserve will taper off asset purchases later this year dominated market sentiment.
EUR/USD hit 1.3299 during U.S. morning trade, the pair’s highest since June 6; the pair subsequently consolidated at 1.3289, rising 0.25%.
The pair was likely to find support at 1.3176, Monday’s low and resistance at 1.3305, the high of June 6 and a three month high.
Speculation that the U.S. central bank will begin to unwind its bond purchasing program continued following Friday’s upbeat jobs data and after ratings agency Standard & Poor’s revised its long-term outlook on the U.S. credit rating to stable from negative on Monday, citing an improving economic outlook.
The euro was sharply lower against the stronger yen, with EUR/JPY dropping 1.71% to 128.64 after the Bank of Japan held back from implementing measures to ease market volatility following its latest policy setting meeting.
The yen strengthened against the dollar and the euro on Tuesday following sharp falls in Japanese equities overnight after the BoJ disappointed market expectations for measures to curb volatility in the government bond market.
The BoJ left monetary policy unchanged and said the economy was picking up, one day after official data showed that Japan’s economy expanded by an annualized 4.1% in the first quarter, up from a preliminary reading of 3.5%.
Elsewhere, the single currency was almost unchanged against the pound, with EUR/GBP inching up 0.02% to 0.8512.
In the U.K., official data on Tuesday showed that manufacturing production fell by a smaller than forecast 0.2% in April, and industrial production unexpectedly rose 0.1%.
EUR/USD hit 1.3299 during U.S. morning trade, the pair’s highest since June 6; the pair subsequently consolidated at 1.3289, rising 0.25%.
The pair was likely to find support at 1.3176, Monday’s low and resistance at 1.3305, the high of June 6 and a three month high.
Speculation that the U.S. central bank will begin to unwind its bond purchasing program continued following Friday’s upbeat jobs data and after ratings agency Standard & Poor’s revised its long-term outlook on the U.S. credit rating to stable from negative on Monday, citing an improving economic outlook.
The euro was sharply lower against the stronger yen, with EUR/JPY dropping 1.71% to 128.64 after the Bank of Japan held back from implementing measures to ease market volatility following its latest policy setting meeting.
The yen strengthened against the dollar and the euro on Tuesday following sharp falls in Japanese equities overnight after the BoJ disappointed market expectations for measures to curb volatility in the government bond market.
The BoJ left monetary policy unchanged and said the economy was picking up, one day after official data showed that Japan’s economy expanded by an annualized 4.1% in the first quarter, up from a preliminary reading of 3.5%.
Elsewhere, the single currency was almost unchanged against the pound, with EUR/GBP inching up 0.02% to 0.8512.
In the U.K., official data on Tuesday showed that manufacturing production fell by a smaller than forecast 0.2% in April, and industrial production unexpectedly rose 0.1%.