Investing.com - The euro was almost unchanged against the dollar on Tuesday after data showed that German economic sentiment continued to deteriorate this month, falling to the lowest level since December 2012.
EUR/USD was steady at 1.2945, remaining supported above the 14-month low of 1.2858 reached one week ago.
The pair was likely to find support at the 1.2900 level and resistance at around 1.2975.
The euro showed little reaction after a report showed that the ZEW index of German economic sentiment fell to 6.9 this month, down from 8.6 in August.
The gauge of current conditions dropped to 25.4 from 44.3 in August.
The ZEW Institute said the fall was due to growing uncertainty over Germany’s economic outlook as a result of sanctions against Russia, and the subdued outlook for the euro zone economy.
The euro has been trading in a narrow range since the European Central Bank cut rates to record lows across the euro zone earlier this month and unveiled new easing measures in a bid to shore up inflation.
Demand for the dollar continued to be underpinned by heightened expectations for an early hike in U.S. interest rates ahead of Wednesday’s Federal Reserve policy meeting.
The Fed was expected to cut its asset purchase program by another $10 billion on Wednesday, which would keep it on track for winding up the program in October, and to start raising interest rates sometime in mid-2015.
Elsewhere, the euro was steady against the yen, with EUR/JPY at 138.67. The single currency gained ground against the weaker pound, with EUR/GBP rising 0.36% to 0.8000.
Sterling remained under pressure as uncertainty over the outcome of Thursday’s referendum on Scottish independence continued to curb investor demand for the British currency.
The latest opinion polls on the Scottish referendum have indicated that the outcome of the vote is too close to call.