Investing.com - The euro was trading at session highs against the U.S. dollar on Tuesday, after a significant improvement in German economic sentiment in December, while expectations for more easing by the Federal Reserve pinned down the dollar.
EUR/USD hit 1.2997 during European afternoon trade, the pair’s highest since December 6; the pair subsequently consolidated at 1.2985, gaining 0.35%.
The pair was likely to find support at 1.2928, the session low and resistance at 1.3085, the high of December 6.
The ZEW Centre for Economic Research said that its index of German economic sentiment increased by 22.6 points to 6.9 this month, from a reading of minus 15.7 in November and the first positive reading since May.
The euro had firmed up earlier in the session as concerns over political uncertainty in Italy eased after Italian Prime Minister Mario Monti played down fears over an imminent resignation on Monday, saying he was focused on "completing his mandate" before 2013 elections.
Meanwhile, expectations that the Federal Reserve would announce more monetary easing measures at the conclusion of its two-day policy meeting on Wednesday continued to weigh on the dollar.
Investors remained wary as they awaited fresh developments in negotiations to avoid the U.S. fiscal cliff amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.
The euro gained ground against the pound and the yen, with EUR/GBP up 0.22% to 0.8067 and EUR/JPY rising 0.47% to 107.06.
The U.S. was to release government data on the trade balance later in the session.
EUR/USD hit 1.2997 during European afternoon trade, the pair’s highest since December 6; the pair subsequently consolidated at 1.2985, gaining 0.35%.
The pair was likely to find support at 1.2928, the session low and resistance at 1.3085, the high of December 6.
The ZEW Centre for Economic Research said that its index of German economic sentiment increased by 22.6 points to 6.9 this month, from a reading of minus 15.7 in November and the first positive reading since May.
The euro had firmed up earlier in the session as concerns over political uncertainty in Italy eased after Italian Prime Minister Mario Monti played down fears over an imminent resignation on Monday, saying he was focused on "completing his mandate" before 2013 elections.
Meanwhile, expectations that the Federal Reserve would announce more monetary easing measures at the conclusion of its two-day policy meeting on Wednesday continued to weigh on the dollar.
Investors remained wary as they awaited fresh developments in negotiations to avoid the U.S. fiscal cliff amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.
The euro gained ground against the pound and the yen, with EUR/GBP up 0.22% to 0.8067 and EUR/JPY rising 0.47% to 107.06.
The U.S. was to release government data on the trade balance later in the session.