Investing.com - The euro dipped against the dollar on Tuesday but losses were limited as tensions over a U.S. military strike against Syria eased and upbeat Chinese economic data supported market sentiment.
EUR/USD hit 1.3231 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3233, shedding 0.15%.
The pair was likely to find support at 1.3200 and resistance at 1.3280, Monday’s high and a seven-day high.
Investor confidence was boosted after reports on industrial production and retail sales from China added to signs that the world’s second largest economy is recovering from a slowdown.
Data released on Tuesday showed that Chinese retail sales rose unexpectedly in August, while Chinese industrial production rose more than forecast last month.
Market sentiment was also bolstered after U.S. President Barack Obama said he would put plans for a military strike against Syria on hold if the country agrees to a Russian proposal to place its chemical weapons under international control.
In the euro zone, data on Tuesday showed that the recession in Italy is deeper than had been previously thought.
The economy contracted by 0.3% in the second quarter, worse than the initial estimate of a 0.2% contraction, bringing the annualized rate of contraction to 2.1% from the initial estimate for a 2% contraction.
Meanwhile, Italian government borrowing costs rose above Spain's for the first time in 18 months on Tuesday, with Italian 10-year bond yields trading at 4.521% compared to 4.508% for Spain.
The dollar remained on the back foot after the latest U.S. nonfarm payrolls report on Friday showed that the economy added slightly fewer jobs than expected in August.
The soft data raised some doubts over whether the Federal Reserve will start to unwind its USD85 billion-a-month asset purchase program at its upcoming policy meeting on September 17-18.
The euro was lower against the pound, with EUR/GBP sliding 0.15% to 0.8432 and was higher against the yen, with EUR/JPY advancing 0.59% to 132.76.
EUR/USD hit 1.3231 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3233, shedding 0.15%.
The pair was likely to find support at 1.3200 and resistance at 1.3280, Monday’s high and a seven-day high.
Investor confidence was boosted after reports on industrial production and retail sales from China added to signs that the world’s second largest economy is recovering from a slowdown.
Data released on Tuesday showed that Chinese retail sales rose unexpectedly in August, while Chinese industrial production rose more than forecast last month.
Market sentiment was also bolstered after U.S. President Barack Obama said he would put plans for a military strike against Syria on hold if the country agrees to a Russian proposal to place its chemical weapons under international control.
In the euro zone, data on Tuesday showed that the recession in Italy is deeper than had been previously thought.
The economy contracted by 0.3% in the second quarter, worse than the initial estimate of a 0.2% contraction, bringing the annualized rate of contraction to 2.1% from the initial estimate for a 2% contraction.
Meanwhile, Italian government borrowing costs rose above Spain's for the first time in 18 months on Tuesday, with Italian 10-year bond yields trading at 4.521% compared to 4.508% for Spain.
The dollar remained on the back foot after the latest U.S. nonfarm payrolls report on Friday showed that the economy added slightly fewer jobs than expected in August.
The soft data raised some doubts over whether the Federal Reserve will start to unwind its USD85 billion-a-month asset purchase program at its upcoming policy meeting on September 17-18.
The euro was lower against the pound, with EUR/GBP sliding 0.15% to 0.8432 and was higher against the yen, with EUR/JPY advancing 0.59% to 132.76.