Investing.com - The euro bounced back after dipping against the dollar on Tuesday, tacking back losses stemming from softer-than-expected wholesale pricing data in choppy trading.
In U.S. trading on Tuesday, EUR/USD was up 0.03% at 1.3079, up from a session low of 1.3042 and off from a high of 1.3101.
The pair was likely to find support at 1.2956, Monday's low, and resistance at 1.3108, Monday's high.
The euro softened earlier after Eurostat, the European Union's statistics office, reported that eurozone's producer price index fell 0.6% in April, the largest monthly decline in almost four years.
Analysts were expecting a 0.3% contraction, and the figure sparked talk the European Central Bank will keep policy loose.
Meanwhile in the U.S., the dollar saw pressures of its own.
The Commerce Department reported earlier that the U.S. trade gap widened 8.5% in April to USD40.3 billion from USD37.8 billion in March, though the figure did come in below estimates for a USD41 billion deficit.
U.S. imports rose 2.4% in April to USD227.7 billion, while exports increased 1.2% to USD187.4 billion.
The dollar, however, saw demand after Japanese government sources told Reuters that Tokyo will direct public pension funds, which control a collective USD2 trillion, to increase investments in equities and overseas assets.
The news sparked demand for the greenback on sentiments investors will buy dollars to move investments out of Japan and into U.S. and other markets.
Bottom fishing brought the single currency into positive territory, however.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.09% at 0.8544, and EUR/JPY trading up 0.62% at 130.95.
On Wednesday, the eurozone is to release official data on retail sales, while Spain and Italy are to release reports on service sector activity.
The U.S. is to release the ADP nonfarm payrolls report on private-sector job creation, as well as government data on factory orders and crude oil stockpiles.
In addition, the Institute of Supply Management is release data on U.S. service-sector activity, a leading economic indicator.
In U.S. trading on Tuesday, EUR/USD was up 0.03% at 1.3079, up from a session low of 1.3042 and off from a high of 1.3101.
The pair was likely to find support at 1.2956, Monday's low, and resistance at 1.3108, Monday's high.
The euro softened earlier after Eurostat, the European Union's statistics office, reported that eurozone's producer price index fell 0.6% in April, the largest monthly decline in almost four years.
Analysts were expecting a 0.3% contraction, and the figure sparked talk the European Central Bank will keep policy loose.
Meanwhile in the U.S., the dollar saw pressures of its own.
The Commerce Department reported earlier that the U.S. trade gap widened 8.5% in April to USD40.3 billion from USD37.8 billion in March, though the figure did come in below estimates for a USD41 billion deficit.
U.S. imports rose 2.4% in April to USD227.7 billion, while exports increased 1.2% to USD187.4 billion.
The dollar, however, saw demand after Japanese government sources told Reuters that Tokyo will direct public pension funds, which control a collective USD2 trillion, to increase investments in equities and overseas assets.
The news sparked demand for the greenback on sentiments investors will buy dollars to move investments out of Japan and into U.S. and other markets.
Bottom fishing brought the single currency into positive territory, however.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.09% at 0.8544, and EUR/JPY trading up 0.62% at 130.95.
On Wednesday, the eurozone is to release official data on retail sales, while Spain and Italy are to release reports on service sector activity.
The U.S. is to release the ADP nonfarm payrolls report on private-sector job creation, as well as government data on factory orders and crude oil stockpiles.
In addition, the Institute of Supply Management is release data on U.S. service-sector activity, a leading economic indicator.