Investing.com - The euro edged lower against the dollar in cautious trade on Tuesday as investors looked ahead to a G20 meeting later in the week which was likely to feature discussions on competitive currency devaluation.
EUR/USD hit 1.3378 during late Asian trade, the session low; the pair subsequently consolidated at 1.3385, dipping 0.13%.
The pair was likely to find support at 1.3352, Friday’s low and a two-week low and resistance at 1.3478, the high of January 25.
The single currency found support after Germany’s Bundesbank head Jens Weidmann said Monday that the euro is not overvalued and that policy aimed at devaluing the euro would only lead to higher inflation.
The euro has come under pressure since European Central Bank President Mario Draghi said last Thursday that the central bank will monitor the economic impact of the stronger euro, fuelling speculation that a stronger single currency could lead to an interest rate cut.
Elsewhere, the euro was lower against the pound and the yen, with EUR/GBP slipping 0.12% to 1.3387 and EUR/JPY down 0.26% to 126.10.
Later Tuesday, Mario Draghi was to speak in the Spanish Parliament in Madrid, while the European Economic and Financial Affairs Council was to hold talks in Brussels. Meanwhile, the U.S. was to release data on the federal budget balance.
EUR/USD hit 1.3378 during late Asian trade, the session low; the pair subsequently consolidated at 1.3385, dipping 0.13%.
The pair was likely to find support at 1.3352, Friday’s low and a two-week low and resistance at 1.3478, the high of January 25.
The single currency found support after Germany’s Bundesbank head Jens Weidmann said Monday that the euro is not overvalued and that policy aimed at devaluing the euro would only lead to higher inflation.
The euro has come under pressure since European Central Bank President Mario Draghi said last Thursday that the central bank will monitor the economic impact of the stronger euro, fuelling speculation that a stronger single currency could lead to an interest rate cut.
Elsewhere, the euro was lower against the pound and the yen, with EUR/GBP slipping 0.12% to 1.3387 and EUR/JPY down 0.26% to 126.10.
Later Tuesday, Mario Draghi was to speak in the Spanish Parliament in Madrid, while the European Economic and Financial Affairs Council was to hold talks in Brussels. Meanwhile, the U.S. was to release data on the federal budget balance.