Investing.com - The euro edged higher against the dollar on Tuesday, but gains looked likely to remain limited amid uncertainty over the timing of possible tapering by the Federal Reserve.
EUR/USD hit 1.3356 during late Asian trade, the session high; the pair subsequently consolidated at 1.3345, easing up 0.08%.
The pair was likely to find support at 1.3310, the low of August 16 and resistance at 1.3376, the high of the same day.
Investors were looking ahead to the minutes of the Fed’s July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program.
Expectations that the Fed may begin tapering as soon as next month were boosted after data last week showed that U.S. weekly jobless claims fell to an almost six year low.
The euro remained supported after Germany’s central bank said Monday the European Central Bank’s forward guidance on interest rates was not an "unconditional commitment".
In its monthly report, Germany’s Bundesbank said the ECB’s pledge to keep bank rates at low levels for an extended period would continue to depend on the medium term inflation outlook.
Elsewhere, the single currency inched higher against the pound, with EUR/GBP easing up 0.06% to 0.8526 and slid lower against the yen, with EUR/JPY losing 0.17% to trade at 129.88.
In Germany, official data on Tuesday showed that producer price inflation dipped 0.1% in July from a month earlier and was 0.5% higher on a year-over-year basis. Economists had forecast a 0.2% month-over-month increase and a 0.7% annual gain.
EUR/USD hit 1.3356 during late Asian trade, the session high; the pair subsequently consolidated at 1.3345, easing up 0.08%.
The pair was likely to find support at 1.3310, the low of August 16 and resistance at 1.3376, the high of the same day.
Investors were looking ahead to the minutes of the Fed’s July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program.
Expectations that the Fed may begin tapering as soon as next month were boosted after data last week showed that U.S. weekly jobless claims fell to an almost six year low.
The euro remained supported after Germany’s central bank said Monday the European Central Bank’s forward guidance on interest rates was not an "unconditional commitment".
In its monthly report, Germany’s Bundesbank said the ECB’s pledge to keep bank rates at low levels for an extended period would continue to depend on the medium term inflation outlook.
Elsewhere, the single currency inched higher against the pound, with EUR/GBP easing up 0.06% to 0.8526 and slid lower against the yen, with EUR/JPY losing 0.17% to trade at 129.88.
In Germany, official data on Tuesday showed that producer price inflation dipped 0.1% in July from a month earlier and was 0.5% higher on a year-over-year basis. Economists had forecast a 0.2% month-over-month increase and a 0.7% annual gain.