Investing.com - The euro fell to a session low against the U.S. dollar on Tuesday, after Federal Reserve Chairman Ben Bernanke refrained from indicating that the Federal Reserve is considering fresh stimulus in keenly anticipated testimony to the U.S. Senate.
EUR/USD hit 1.2217 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.2218, shedding 0.45%.
The pair was likely to find support at 1.2161, last Friday’s low and a two-year low and resistance at 1.2288, Monday’s high.
Bernanke delivered a negative assessment of the outlook for the U.S. economy, saying growth had lost momentum in the first half of the year and added that efforts to reduce the U.S. unemployment rate were progressing “frustratingly” slowly.
However, he stopped short of indicating whether the Fed would embark on a third round of quantitative easing to stimulate the economy, but reiterated that the central bank was prepared to take further action to support the economic recovery, if necessary.
In the euro zone, Spain saw short-term borrowing costs fall at an auction of 12 and 18-month government bonds earlier, but the yield on the country’s 10-year bonds was at 6.76%, remaining close to the critical 7% threshold amid sustained concerns over the country’s finances.
Meanwhile, data showed that German economic sentiment deteriorated for the third consecutive month in July, as concerns over the euro zone’s ongoing debt crisis continued to weigh.
The ZEW Centre for Economic Research said that its index of German economic sentiment fell to minus 19.6 in July from June’s reading of minus 16.9, but was slightly better than expectations for a decline to minus 20.0.
The euro turned lower against the pound and the yen, with EUR/GBP slipping 0.07% to 0.7843 and EUR/JPY losing 0.09% to trade at 96.68.
Also Tuesday, official data showed that core consumer price inflation in the U.S. rose 0.2% in June, broadly in line with market expectations, while prices including food and energy costs were flat.
A separate report showed that industrial production in the U.S. rose 0.4% in June, just above expectations for a 0.3% increase.
EUR/USD hit 1.2217 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.2218, shedding 0.45%.
The pair was likely to find support at 1.2161, last Friday’s low and a two-year low and resistance at 1.2288, Monday’s high.
Bernanke delivered a negative assessment of the outlook for the U.S. economy, saying growth had lost momentum in the first half of the year and added that efforts to reduce the U.S. unemployment rate were progressing “frustratingly” slowly.
However, he stopped short of indicating whether the Fed would embark on a third round of quantitative easing to stimulate the economy, but reiterated that the central bank was prepared to take further action to support the economic recovery, if necessary.
In the euro zone, Spain saw short-term borrowing costs fall at an auction of 12 and 18-month government bonds earlier, but the yield on the country’s 10-year bonds was at 6.76%, remaining close to the critical 7% threshold amid sustained concerns over the country’s finances.
Meanwhile, data showed that German economic sentiment deteriorated for the third consecutive month in July, as concerns over the euro zone’s ongoing debt crisis continued to weigh.
The ZEW Centre for Economic Research said that its index of German economic sentiment fell to minus 19.6 in July from June’s reading of minus 16.9, but was slightly better than expectations for a decline to minus 20.0.
The euro turned lower against the pound and the yen, with EUR/GBP slipping 0.07% to 0.7843 and EUR/JPY losing 0.09% to trade at 96.68.
Also Tuesday, official data showed that core consumer price inflation in the U.S. rose 0.2% in June, broadly in line with market expectations, while prices including food and energy costs were flat.
A separate report showed that industrial production in the U.S. rose 0.4% in June, just above expectations for a 0.3% increase.