Investing.com - The euro edged higher against the dollar on Tuesday but gains were limited as uncertainty ahead of Italian elections overshadowed data showing that German economic sentiment rose to a 34-month high in February.
EUR/USD hit 1.3373 during U.S. morning trade, the session high, the pair subsequently consolidated at 1.3363, up 0.10%.
The pair was likely to find support at 1.3263, the low of January 23 and resistance at 1.3454, the high of February 14.
The euro found support after the ZEW Centre for Economic Research said that its index of German economic sentiment jumped to 48.2 in February, the highest since April 2010, from 31.2 in January. Analysts had expected the index to rise to 35.0 this month.
But the single currency remained under pressure ahead of Italian general elections this weekend, amid concerns that a hung parliament could hamper ongoing efforts at economic reforms.
On Monday, European Central Bank President Mario Draghi reiterated that the euro’s exchange rate could affect the bank’s inflation outlook.
Elsewhere, the euro edged higher against the pound, with EUR/GBP inching up 0.09% to 0.8638 but was lower against the yen, with EUR/JPY down 0.31% to 125.06.
The yen was higher against the euro and the dollar after Japan’s finance minister said the government is not considering buying foreign bonds through a fund with the Bank of Japan.
The comments came one day after Japanese Prime Minister Shinzo Abe said the idea was one option for monetary easing.
EUR/USD hit 1.3373 during U.S. morning trade, the session high, the pair subsequently consolidated at 1.3363, up 0.10%.
The pair was likely to find support at 1.3263, the low of January 23 and resistance at 1.3454, the high of February 14.
The euro found support after the ZEW Centre for Economic Research said that its index of German economic sentiment jumped to 48.2 in February, the highest since April 2010, from 31.2 in January. Analysts had expected the index to rise to 35.0 this month.
But the single currency remained under pressure ahead of Italian general elections this weekend, amid concerns that a hung parliament could hamper ongoing efforts at economic reforms.
On Monday, European Central Bank President Mario Draghi reiterated that the euro’s exchange rate could affect the bank’s inflation outlook.
Elsewhere, the euro edged higher against the pound, with EUR/GBP inching up 0.09% to 0.8638 but was lower against the yen, with EUR/JPY down 0.31% to 125.06.
The yen was higher against the euro and the dollar after Japan’s finance minister said the government is not considering buying foreign bonds through a fund with the Bank of Japan.
The comments came one day after Japanese Prime Minister Shinzo Abe said the idea was one option for monetary easing.