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Forex - EUR/USD dips after German ZEW, OECD report

Published 11/19/2013, 05:36 AM
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Investing.com - The euro dipped against the dollar on Tuesday as a report showing that investor confidence in Germany rose to a four year high this month was overshadowed after the Organization for Economic Co-operation and Development cut its forecast for global growth next year.

EUR/USD edged down 0.06% to 1.3497, after rising to session highs of 1.3543.

The pair was likely to find support at 1.3475 and resistance at 1.3546, the high of November 6.

The ZEW Centre for Economic Research said that its index of German economic sentiment rose by 1.8 points to a four year high of 54.6 from October’s reading of 52.8. Economists had expected the index improve to 54.0.

The current conditions Index ticked down to 28.7 from 29.7 in October, compared to expectations for an increase to 31.0.

Separately, OECD cut its forecast for global economic growth in 2014 to 3.6%, down from 4%, warning that the outlook for emerging markets is deteriorating.

Investors remained cautious amid expectations that the Federal Reserve will maintain its asset purchase program well into next year after comments by Federal Reserve Chairwoman nominee Janet Yellen last week were seen as reiterating the need for continued stimulus.

Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.

The euro slipped lower against the yen, with EUR/JPY down 0.22% to 134.75.

Elsewhere, the dollar was lower against the yen, with USD/JPY down 0.18% to 99.79.




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