Investing.com – The euro edged higher against the U.S. dollar on Tuesday, finding support after better-than-expected German economic growth data, but the single currency remained under pressure amid concerns over an ongoing political deadlock in Greece.
EUR/USD hit 1.2856 during late Asian trade, the session high; the pair subsequently consolidated at 1.2845, gaining 0.19%.
The pair was likely to find support at 1.2813, the session low and the pair’s lowest since January 18 and resistance at 1.2903, Monday’s high.
The euro strengthened against the dollar after preliminary data showed that Germany’s economy expanded more-than-expected in the first quarter, indicating that the euro zone’s largest economy is weathering the effects of the crisis in the region.
Germany’s gross domestic product grew by a seasonally adjusted 0.5% in the three months to March, above expectations for a growth of 0.1%.
German GDP contracted by an unrevised 0.2% in the fourth quarter of 2011.
Greece’s President Karolos Papoulias was due to hold a fresh round of cross party talks aimed at forming a government later in the day, after a more than week-long political stalemate fuelled fears over the country’s ability to uphold its financial commitments and its possible exit from the euro zone.
Earlier Tuesday, Moody’s Investors Service announced widespread downgrades on Italy’s banking sector, amid concerns over limited access to market funding.
The euro was also higher against the pound and the yen, with EUR/GBP easing up 0.11% to hit 0.7979 and EUR/JPY adding 0.23% to hit 102.61.
Later in the day, the euro zone was to produce preliminary data on GDP, while the ZEW Centre for Economic Research was to release a report on German economic sentiment as well as economic sentiment throughout the euro area. European Union finance ministers were also scheduled to hold talks throughout the day.
Later Tuesday, the U.S. was to publish official data on retail sales and consumer price inflation, as well as a report on manufacturing activity in New York.
EUR/USD hit 1.2856 during late Asian trade, the session high; the pair subsequently consolidated at 1.2845, gaining 0.19%.
The pair was likely to find support at 1.2813, the session low and the pair’s lowest since January 18 and resistance at 1.2903, Monday’s high.
The euro strengthened against the dollar after preliminary data showed that Germany’s economy expanded more-than-expected in the first quarter, indicating that the euro zone’s largest economy is weathering the effects of the crisis in the region.
Germany’s gross domestic product grew by a seasonally adjusted 0.5% in the three months to March, above expectations for a growth of 0.1%.
German GDP contracted by an unrevised 0.2% in the fourth quarter of 2011.
Greece’s President Karolos Papoulias was due to hold a fresh round of cross party talks aimed at forming a government later in the day, after a more than week-long political stalemate fuelled fears over the country’s ability to uphold its financial commitments and its possible exit from the euro zone.
Earlier Tuesday, Moody’s Investors Service announced widespread downgrades on Italy’s banking sector, amid concerns over limited access to market funding.
The euro was also higher against the pound and the yen, with EUR/GBP easing up 0.11% to hit 0.7979 and EUR/JPY adding 0.23% to hit 102.61.
Later in the day, the euro zone was to produce preliminary data on GDP, while the ZEW Centre for Economic Research was to release a report on German economic sentiment as well as economic sentiment throughout the euro area. European Union finance ministers were also scheduled to hold talks throughout the day.
Later Tuesday, the U.S. was to publish official data on retail sales and consumer price inflation, as well as a report on manufacturing activity in New York.