Investing.com - The euro edged lower against the dollar on Tuesday after data showed that the U.S. trade deficit shrank to the lowest level in four years in November.
EUR/USD pulled away from session highs of 1.3656, and was last down 0.06% to 1.3620.
The pair was likely to find support at 1.3580, Friday’s low and an almost four week low and resistance at 1.3656.
The greenback was boosted after the Commerce Department said the U.S. trade deficit narrowed to USD34.25 billion in November from a revised deficit of USD39.33 billion in the previous month.
Economists had expected the U.S. trade deficit to widen to USD40 billion.
U.S. exports rose 0.9% to a record high of USD194.9 billion, while imports fell 1.4% to USD229.1 billion.
Investors were turning their attention to Wednesday’s minutes of the Federal Reserve’s December meeting and Friday’s U.S. jobs report for December for indications on the possible timing of further reductions in Fed stimulus.
The euro touched session highs earlier after the yield on Irish 10-year government bonds fell to the lowest level since 2009, following strong demand at a sale of the country’s new 10-year bonds, the country’s first offering since it exited its bailout last month.
But the euro struggled to build on gains after data on Tuesday showed that the annual rate of inflation in the euro zone slowed to 0.8% in December from 0.9% the previous month, fuelling fresh concerns over the threat of deflation in the currency bloc.
Elsewhere, data showed that the number of people out of work in Germany fell by 15,000 in December to 2.96 million, better than expectations for a decline of 1,000.
The country’s unemployment rate remained steady at 6.9%.
A separate report showed that German retail sales rose 1.5% in November, more than double expectations for an increase of 0.6%.
The euro was higher against the yen, with EUR/JPY rising 0.37% to 142.55. Meanwhile, the shared currency was fractionally higher against the pound, with EUR/GBP edging up 0.06% to 0.8310.
EUR/USD pulled away from session highs of 1.3656, and was last down 0.06% to 1.3620.
The pair was likely to find support at 1.3580, Friday’s low and an almost four week low and resistance at 1.3656.
The greenback was boosted after the Commerce Department said the U.S. trade deficit narrowed to USD34.25 billion in November from a revised deficit of USD39.33 billion in the previous month.
Economists had expected the U.S. trade deficit to widen to USD40 billion.
U.S. exports rose 0.9% to a record high of USD194.9 billion, while imports fell 1.4% to USD229.1 billion.
Investors were turning their attention to Wednesday’s minutes of the Federal Reserve’s December meeting and Friday’s U.S. jobs report for December for indications on the possible timing of further reductions in Fed stimulus.
The euro touched session highs earlier after the yield on Irish 10-year government bonds fell to the lowest level since 2009, following strong demand at a sale of the country’s new 10-year bonds, the country’s first offering since it exited its bailout last month.
But the euro struggled to build on gains after data on Tuesday showed that the annual rate of inflation in the euro zone slowed to 0.8% in December from 0.9% the previous month, fuelling fresh concerns over the threat of deflation in the currency bloc.
Elsewhere, data showed that the number of people out of work in Germany fell by 15,000 in December to 2.96 million, better than expectations for a decline of 1,000.
The country’s unemployment rate remained steady at 6.9%.
A separate report showed that German retail sales rose 1.5% in November, more than double expectations for an increase of 0.6%.
The euro was higher against the yen, with EUR/JPY rising 0.37% to 142.55. Meanwhile, the shared currency was fractionally higher against the pound, with EUR/GBP edging up 0.06% to 0.8310.