Investing.com - The euro edged lower against the dollar on Tuesday after better-than-expected consumer confidence data sparked demand for the greenback amid hopes for U.S. recovery to gain steam in 2014.
In U.S. trading, EUR/USD hit 1.3769, down 0.22%, up from a session low of 1.3729 and off a high of 1.3819.
The pair was likely to find support at 1.3729, the earlier low, and resistance at 1.3819, the earlier high.
The Conference Board reported earlier that its index of U.S. consumer confidence improved to 78.1 in December from 72.0 in November, beating consensus forecasts for a 76.0 reading.
Also Tuesday, the Standard & Poor’s/Case-Shiller 20-city home price index rose at an annualized rate of 13.6% in October from a year earlier, the strongest pace since February of 2006 and above forecasts for an increase of 13.0%.
The data confirmed expectations for the Federal Reserve to continue winding down stimulus programs such as its USD75 billion in monthly bond purchases next year and let the economy stand on its own feet.
Fed bond purchases tend to weaken the dollar by driving down interest rates to spur recovery.
Capping the dollar's gains, however, were industry data revealing that the Chicago purchasing managers’ index fell to a seasonally adjusted 59.1 this month from 63.0 in November. Analysts had expected the index to decline to 61.0 in December.
The euro was down against the pound, with EUR/GBP falling 0.57% to 0.8317, and down against the yen, with EUR/JPY trading down 0.28% 144.73.
In U.S. trading, EUR/USD hit 1.3769, down 0.22%, up from a session low of 1.3729 and off a high of 1.3819.
The pair was likely to find support at 1.3729, the earlier low, and resistance at 1.3819, the earlier high.
The Conference Board reported earlier that its index of U.S. consumer confidence improved to 78.1 in December from 72.0 in November, beating consensus forecasts for a 76.0 reading.
Also Tuesday, the Standard & Poor’s/Case-Shiller 20-city home price index rose at an annualized rate of 13.6% in October from a year earlier, the strongest pace since February of 2006 and above forecasts for an increase of 13.0%.
The data confirmed expectations for the Federal Reserve to continue winding down stimulus programs such as its USD75 billion in monthly bond purchases next year and let the economy stand on its own feet.
Fed bond purchases tend to weaken the dollar by driving down interest rates to spur recovery.
Capping the dollar's gains, however, were industry data revealing that the Chicago purchasing managers’ index fell to a seasonally adjusted 59.1 this month from 63.0 in November. Analysts had expected the index to decline to 61.0 in December.
The euro was down against the pound, with EUR/GBP falling 0.57% to 0.8317, and down against the yen, with EUR/JPY trading down 0.28% 144.73.