Investing.com - The euro rose to six-month highs against the dollar on Tuesday, amid ongoing uncertainty over the timing of a possible reduction in stimulus measures by the Federal Reserve.
EUR/USD hit 1.3452 during U.S. morning trade, the highest since February 14; the pair subsequently consolidated at 1.3433, advancing 0.74%.
The pair was likely to find support at 1.3322, the session low and resistance at 1.3520.
The dollar came under pressure amid widespread speculation that the Fed may start to unwind its asset purchase program as soon as September after data last week showed that U.S. weekly jobless claims fell to an almost six year low.
Investors were looking to the minutes of the Fed’s July meeting on Wednesday for further indications as to when the central bank may start to pull back its asset purchase program.
Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.
Demand for the single currency continued to be underpinned after data last week showed that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession.
The euro was also higher against the pound and the yen, with EUR/GBP rising 0.53% to 0.8566 and EUR/JPY climbing 0.17% to 130.34.
EUR/USD hit 1.3452 during U.S. morning trade, the highest since February 14; the pair subsequently consolidated at 1.3433, advancing 0.74%.
The pair was likely to find support at 1.3322, the session low and resistance at 1.3520.
The dollar came under pressure amid widespread speculation that the Fed may start to unwind its asset purchase program as soon as September after data last week showed that U.S. weekly jobless claims fell to an almost six year low.
Investors were looking to the minutes of the Fed’s July meeting on Wednesday for further indications as to when the central bank may start to pull back its asset purchase program.
Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.
Demand for the single currency continued to be underpinned after data last week showed that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession.
The euro was also higher against the pound and the yen, with EUR/GBP rising 0.53% to 0.8566 and EUR/JPY climbing 0.17% to 130.34.