Investing.com – The euro swung between small gains and losses against the U.S. dollar in choppy trade on Tuesday, as markets began focusing on the European Central Bank’s rate setting meeting later in the week.
EUR/USD hit 1.4772 during late Asian trade, the daily low; the pair subsequently consolidated at 1.4832, easing up 0.01%.
The pair was likely to find support at 1.4631, the low of April 27and resistance at 1.4901, Monday’s high and a 16-month high.
On Monday, the dollar found support after news that U.S. forces had killed al Qaeda leader Osama bin Laden before resuming its broad decline amid concerns that the U.S. Federal Reserve will not tighten policy for some time to come.
Meanwhile, Monday’s surprisingly strong euro zone manufacturing data bolstered expectations for another interest rate hike by the ECB.
The final Markit Manufacturing Purchasing Managers' Index rose to 58 in April from 57.5 in March, indicating that factory output rose at a faster rate than in the previous month. The final PMI was higher than the preliminary estimate of 57.7 released last month.
The euro was up against the pound, with EUR/GBP rising 0.20% to hit 0.8921.
Later Tuesday, the euro zone was to publish official data on producer price inflation, while the U.S. was to release government data on factory orders.
EUR/USD hit 1.4772 during late Asian trade, the daily low; the pair subsequently consolidated at 1.4832, easing up 0.01%.
The pair was likely to find support at 1.4631, the low of April 27and resistance at 1.4901, Monday’s high and a 16-month high.
On Monday, the dollar found support after news that U.S. forces had killed al Qaeda leader Osama bin Laden before resuming its broad decline amid concerns that the U.S. Federal Reserve will not tighten policy for some time to come.
Meanwhile, Monday’s surprisingly strong euro zone manufacturing data bolstered expectations for another interest rate hike by the ECB.
The final Markit Manufacturing Purchasing Managers' Index rose to 58 in April from 57.5 in March, indicating that factory output rose at a faster rate than in the previous month. The final PMI was higher than the preliminary estimate of 57.7 released last month.
The euro was up against the pound, with EUR/GBP rising 0.20% to hit 0.8921.
Later Tuesday, the euro zone was to publish official data on producer price inflation, while the U.S. was to release government data on factory orders.