Investing.com - The euro edged higher against the dollar on Tuesday, but gains were limited after European Central Bank President Mario Draghi said Monday the bank is ready to offer the European banking sector more help if necessary.
EUR/USD hit 1.3506 during late Asian trade, the session high; the pair subsequently consolidated at 1.3502, inching up 0.06%.
The pair was likely to find support at 1.3478, Monday’s low and resistance at 1.3550.
The euro came under pressure after Draghi said the ECB is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.
The comments came after data showed that manufacturing output in the euro zone was weaker than expected this month, but this was offset by an improvement in service sector activity.
The dollar was held in check after New York Federal Reserve President William Dudley defended the central bank’s decision to keep its stimulus program unchanged last week, in comments on Monday.
Dudley said that adjustments to the Fed’s USD85 billion-a-month asset purchase program "need to be anchored in an assessment of how the economy is actually performing”.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
The euro pushed higher against the pound and the yen, with EUR/GBP rising 0.12% to 0.8420 and EUR/JPY climbing 0.16% to 133.59.
The Ifo Institute was to release its closely watched report on German business climate later in the trading day.
EUR/USD hit 1.3506 during late Asian trade, the session high; the pair subsequently consolidated at 1.3502, inching up 0.06%.
The pair was likely to find support at 1.3478, Monday’s low and resistance at 1.3550.
The euro came under pressure after Draghi said the ECB is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.
The comments came after data showed that manufacturing output in the euro zone was weaker than expected this month, but this was offset by an improvement in service sector activity.
The dollar was held in check after New York Federal Reserve President William Dudley defended the central bank’s decision to keep its stimulus program unchanged last week, in comments on Monday.
Dudley said that adjustments to the Fed’s USD85 billion-a-month asset purchase program "need to be anchored in an assessment of how the economy is actually performing”.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
The euro pushed higher against the pound and the yen, with EUR/GBP rising 0.12% to 0.8420 and EUR/JPY climbing 0.16% to 133.59.
The Ifo Institute was to release its closely watched report on German business climate later in the trading day.