Investing.com - The euro fell against the dollar on Tuesday after soft wholesale pricing data cemented expectations for the European Central Bank to trim interest rates this week to speed up recovery.
In U.S. trading on Tuesday, EUR/USD was down 0.34% at 1.3470, up from a session low of 1.3450 and off from a high of 1.3524.
The pair was likely to find support at 1.3442, Monday's low, and resistance at 1.3818, the high from Oct. 28.
The euro zone's industrial producer price index slipped 0.9% in September from a year earlier, after dropping 0.8% in August, worse than market calls for a 0.7% contraction.
Industrial producer prices rose 0.1% in September from August, below consensus forecasts for 0.2% expansion.
Disappointing pricing and unemployment reports have many convinced the European Central Bank will trim interest rates at a policy meeting this week, which softened the euro.
Meanwhile in the U.S., the Institute of Supply Management said its non-manufacturing purchasing managers' index rose to 55.4 in October from 54.4 in September, beating forecasts for a 54.0 reading, which gave the dollar some support.
Capping the dollar's gains, however, were broad expectations for the Federal Reserve to keep its USD85 billion monthly bond-buying program in place to drive recovery by pushing down interest rates, weakening the dollar in the process.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.77% at 0.8398 and EUR/JPY trading down 0.36% at 132.82.
On Wednesday, the euro zone is to release data on retail sales.
In U.S. trading on Tuesday, EUR/USD was down 0.34% at 1.3470, up from a session low of 1.3450 and off from a high of 1.3524.
The pair was likely to find support at 1.3442, Monday's low, and resistance at 1.3818, the high from Oct. 28.
The euro zone's industrial producer price index slipped 0.9% in September from a year earlier, after dropping 0.8% in August, worse than market calls for a 0.7% contraction.
Industrial producer prices rose 0.1% in September from August, below consensus forecasts for 0.2% expansion.
Disappointing pricing and unemployment reports have many convinced the European Central Bank will trim interest rates at a policy meeting this week, which softened the euro.
Meanwhile in the U.S., the Institute of Supply Management said its non-manufacturing purchasing managers' index rose to 55.4 in October from 54.4 in September, beating forecasts for a 54.0 reading, which gave the dollar some support.
Capping the dollar's gains, however, were broad expectations for the Federal Reserve to keep its USD85 billion monthly bond-buying program in place to drive recovery by pushing down interest rates, weakening the dollar in the process.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.77% at 0.8398 and EUR/JPY trading down 0.36% at 132.82.
On Wednesday, the euro zone is to release data on retail sales.