Investing.com - The euro eased back from session highs against the dollar on Tuesday following the release of better-than-expected U.S. inflation data, but the greenback remained under pressure ahead of testimony by Federal Reserve Chairman Ben Bernanke on Wednesday.
EUR/USD pulled away from 1.3136, the highest since July 11, to hit 1.3113 during U.S. morning trade, still up 0.41% for the day.
The pair was likely to find support at 1.2992, Monday’s low and resistance at 1.3205, the high of July 11.
Data on Tuesday showed that U.S. consumer prices rose more than expected in June, while industrial production also beat expectations last month.
The Labor Department said U.S. consumer prices rose by a seasonally adjusted 0.5% in June, compared to expectations for a 0.3% increase, after rising by 0.1% in May.
Year-over-year, consumer prices rose by 1.8%, above expectations for a 1.7% gain and up from 1.4% in May.
Meanwhile, the Federal Reserve said U.S. industrial production rose 0.3% in June, above expectations for a 0.2% increase.
The dollar remained under pressure as investors awaited Bernanke’s congressional testimony on monetary policy Wednesday, amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.
The dollar fell sharply last week after Bernanke said the U.S. economy still needed monetary stimulus.
The single currency shrugged off data showing that the ZEW index of economic sentiment in Germany deteriorated unexpectedly in July.
The ZEW Centre for Economic Research said that its index of German economic sentiment fell to 36.3 in the current month from 38.5 in June. Analysts had expected a reading of 39.6.
Elsewhere, official data showed that consumer price inflation in the euro zone held steady at a seasonally adjusted 1.6% in June, unchanged from an initial estimate and in line with expectations.
A separate report showed that euro zone exports fell 2.3% in June from April, while imports declined 2.2%. The currency bloc posted a trade surplus of EUR14.6 billion from EUR15.2 billion in April.
The euro hit four-month highs against the pound, with EUR/GBP up 0.54% to 0.8695.
Sterling fell to session lows against the euro and the dollar earlier after official data showed that consumer price inflation in the U.K. rose slightly less-than-expected in June.
The Office for National Statistics said U.K. consumer price inflation rose 2.9% from a year earlier in June, coming in below expectations for a 3.0% increase and up from 2.7% in May.
The euro edged higher against the yen, with EUR/JPY edging up 0.12% to 130.59.
EUR/USD pulled away from 1.3136, the highest since July 11, to hit 1.3113 during U.S. morning trade, still up 0.41% for the day.
The pair was likely to find support at 1.2992, Monday’s low and resistance at 1.3205, the high of July 11.
Data on Tuesday showed that U.S. consumer prices rose more than expected in June, while industrial production also beat expectations last month.
The Labor Department said U.S. consumer prices rose by a seasonally adjusted 0.5% in June, compared to expectations for a 0.3% increase, after rising by 0.1% in May.
Year-over-year, consumer prices rose by 1.8%, above expectations for a 1.7% gain and up from 1.4% in May.
Meanwhile, the Federal Reserve said U.S. industrial production rose 0.3% in June, above expectations for a 0.2% increase.
The dollar remained under pressure as investors awaited Bernanke’s congressional testimony on monetary policy Wednesday, amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.
The dollar fell sharply last week after Bernanke said the U.S. economy still needed monetary stimulus.
The single currency shrugged off data showing that the ZEW index of economic sentiment in Germany deteriorated unexpectedly in July.
The ZEW Centre for Economic Research said that its index of German economic sentiment fell to 36.3 in the current month from 38.5 in June. Analysts had expected a reading of 39.6.
Elsewhere, official data showed that consumer price inflation in the euro zone held steady at a seasonally adjusted 1.6% in June, unchanged from an initial estimate and in line with expectations.
A separate report showed that euro zone exports fell 2.3% in June from April, while imports declined 2.2%. The currency bloc posted a trade surplus of EUR14.6 billion from EUR15.2 billion in April.
The euro hit four-month highs against the pound, with EUR/GBP up 0.54% to 0.8695.
Sterling fell to session lows against the euro and the dollar earlier after official data showed that consumer price inflation in the U.K. rose slightly less-than-expected in June.
The Office for National Statistics said U.K. consumer price inflation rose 2.9% from a year earlier in June, coming in below expectations for a 3.0% increase and up from 2.7% in May.
The euro edged higher against the yen, with EUR/JPY edging up 0.12% to 130.59.