Investing.com – The euro edged higher against the U.S. dollar on Tuesday, as markets remained cautious ahead of the release of U.S. government data on the housing sector and a meeting of Federal Reserve policy makers.
EUR/USD hit 1.3100 during early European trade, the daily high; the pair subsequently consolidated at 1.3081, gaining 0.15%.
The pair was likely to find support at 1.2975, last Friday's low and short-term resistance at 1.3158.
Later in the day, the U.S. was to release data on building permits and housing starts, ahead of a meeting of Federal Reserve policy makers. Fears over a slowdown in the rate of U.S. economic growth sparked speculation that Fed policy makers would announce fresh stimulus measures, a strategy known as quantitative easing, following the meeting.
Quantitative easing increases the supply of money, causing inflation to rise. It is used to stimulate an economy in a situation where interest rates are already low.
The euro was also up against the pound, with EUR/GBP gaining 0.32% to hit 0.8430.
Also Tuesday, Ireland was to hold an auction of government debt, which would give a strong indication of the level of investor confidence in the country's economy.
EUR/USD hit 1.3100 during early European trade, the daily high; the pair subsequently consolidated at 1.3081, gaining 0.15%.
The pair was likely to find support at 1.2975, last Friday's low and short-term resistance at 1.3158.
Later in the day, the U.S. was to release data on building permits and housing starts, ahead of a meeting of Federal Reserve policy makers. Fears over a slowdown in the rate of U.S. economic growth sparked speculation that Fed policy makers would announce fresh stimulus measures, a strategy known as quantitative easing, following the meeting.
Quantitative easing increases the supply of money, causing inflation to rise. It is used to stimulate an economy in a situation where interest rates are already low.
The euro was also up against the pound, with EUR/GBP gaining 0.32% to hit 0.8430.
Also Tuesday, Ireland was to hold an auction of government debt, which would give a strong indication of the level of investor confidence in the country's economy.