Investing.com - The euro edged higher against the U.S. dollar on Tuesday, amid hopes that world central banks would act to support the global economy, after weak worldwide manufacturing data on Monday highlighted concerns over the outlook for growth.
EUR/USD hit 1.2614 during late Asian trade, the session high; the pair subsequently consolidated at 1.2598, gaining 0.18%.
The pair was likely to find support at 1.2567, Monday’s low and resistance at 1.2692, Friday’s high.
On Monday, the Institute for Supply Management said its index of U.S. manufacturing activity dropped to 49.7 in June, its lowest level since July 2009, from 53.5 in May.
The data fuelled speculation that the Federal Reserve may implement a third round of quantitative easing to shore up growth in the U.S. economy, which has been hit by the ongoing crisis in the euro zone.
In the euro zone, the final reading of the bloc’s manufacturing index came in at 45.1 in June, holding steady at its lowest level since June 2009.
Investors were looking ahead to the outcome of the European Central Bank’s monetary policy meeting on Thursday, amid growing expectations for a rate cut.
The euro eased higher against the pound, with EUR/GBP adding 0.12% to hit 0.8023 and gained ground against the yen, with EUR/JPY up 0.51% to 100.50.
Later in the day, the U.S. was to publish official data on factory orders.
EUR/USD hit 1.2614 during late Asian trade, the session high; the pair subsequently consolidated at 1.2598, gaining 0.18%.
The pair was likely to find support at 1.2567, Monday’s low and resistance at 1.2692, Friday’s high.
On Monday, the Institute for Supply Management said its index of U.S. manufacturing activity dropped to 49.7 in June, its lowest level since July 2009, from 53.5 in May.
The data fuelled speculation that the Federal Reserve may implement a third round of quantitative easing to shore up growth in the U.S. economy, which has been hit by the ongoing crisis in the euro zone.
In the euro zone, the final reading of the bloc’s manufacturing index came in at 45.1 in June, holding steady at its lowest level since June 2009.
Investors were looking ahead to the outcome of the European Central Bank’s monetary policy meeting on Thursday, amid growing expectations for a rate cut.
The euro eased higher against the pound, with EUR/GBP adding 0.12% to hit 0.8023 and gained ground against the yen, with EUR/JPY up 0.51% to 100.50.
Later in the day, the U.S. was to publish official data on factory orders.