Investing.com – The euro slipped against the U.S. dollar on Tuesday, to touch a four-day low after European Central Bank Governor Jean-Claude Trichet said he “entirely” shares the U.S.’s view that a strong dollar is in the U.S. interest.
EUR/USD hit 1.4494 during late Asian trade, the pair’s lowest since April 20; the pair subsequently consolidated at 1.4536, sliding 0.30%.
The pair was likely to find support at 1.4327, the low of April 20 and resistance at 1.4648, the high of April 21 and a 16-month high.
The ECB president said he had “full trust” in the U.S. preserving its creditworthiness. All advanced economies, “without exception,” should be “very keen on the sustainability of their long-term fiscal policies,” he said.
Mr. Trichet also warned that policy makers must avert any jump in inflation expectations amid the risk of higher prices spreading through the economy.
Trichet said that “it is extremely important to continue solidly anchoring inflation expectations in a period which is marked by uncertainties and turbulences.”
The euro was also slightly lower against the pound, with EUR/GBP slipping 0.10% to hit 0.8828.
Later in the day, the U.S. was to publish reports on house price inflation and consumer confidence, as well as official data on manufacturing activity in Richmond.
EUR/USD hit 1.4494 during late Asian trade, the pair’s lowest since April 20; the pair subsequently consolidated at 1.4536, sliding 0.30%.
The pair was likely to find support at 1.4327, the low of April 20 and resistance at 1.4648, the high of April 21 and a 16-month high.
The ECB president said he had “full trust” in the U.S. preserving its creditworthiness. All advanced economies, “without exception,” should be “very keen on the sustainability of their long-term fiscal policies,” he said.
Mr. Trichet also warned that policy makers must avert any jump in inflation expectations amid the risk of higher prices spreading through the economy.
Trichet said that “it is extremely important to continue solidly anchoring inflation expectations in a period which is marked by uncertainties and turbulences.”
The euro was also slightly lower against the pound, with EUR/GBP slipping 0.10% to hit 0.8828.
Later in the day, the U.S. was to publish reports on house price inflation and consumer confidence, as well as official data on manufacturing activity in Richmond.