Investing.com - The euro edged lower against the U.S. dollar on Tuesday, but remained supported as markets continued to focus on U.S. budget negotiations amid growing fears over a potential default.
EUR/USD hit 1.3558 during late Asian trade, the session low; the pair subsequently consolidated at 1.3567, easing 0.10%.
The pair was likely to find support at 1.3506, the low of October 2 and resistance at 1.3632, the high of October 4.
Investors remained cautious, although new hopes on the U.S. budget front emerged after President Barack Obama said on Monday that he would accept a short-term increase in the nation's borrowing authority to avoid a default.
In addition, a U.S. Senator reportedly mentioned a plan to cut federal spending and reform the U.S. tax code as part of a broader deal.
The news came after Republican House Speaker John Boehner on Sunday said the House will not support bills to fully reopen the government or increase the U.S. debt ceiling unless the Obama administration agrees to talks aimed at reducing the deficit.
Meanwhile, official data released Tuesday showed that Germany's trade surplus widened more-than-expected in August, rising to EUR15.6 billion from an upwardly revised surplus of EUR15 billion the previous month.
Analysts had expected the trade surplus to widen to EUR15.1 billion in August.
The euro was steady against the pound with EUR/GBP inching 0.05% higher, to hit 0.8441.
Later in the day, Germany was to release official data on factory orders.
EUR/USD hit 1.3558 during late Asian trade, the session low; the pair subsequently consolidated at 1.3567, easing 0.10%.
The pair was likely to find support at 1.3506, the low of October 2 and resistance at 1.3632, the high of October 4.
Investors remained cautious, although new hopes on the U.S. budget front emerged after President Barack Obama said on Monday that he would accept a short-term increase in the nation's borrowing authority to avoid a default.
In addition, a U.S. Senator reportedly mentioned a plan to cut federal spending and reform the U.S. tax code as part of a broader deal.
The news came after Republican House Speaker John Boehner on Sunday said the House will not support bills to fully reopen the government or increase the U.S. debt ceiling unless the Obama administration agrees to talks aimed at reducing the deficit.
Meanwhile, official data released Tuesday showed that Germany's trade surplus widened more-than-expected in August, rising to EUR15.6 billion from an upwardly revised surplus of EUR15 billion the previous month.
Analysts had expected the trade surplus to widen to EUR15.1 billion in August.
The euro was steady against the pound with EUR/GBP inching 0.05% higher, to hit 0.8441.
Later in the day, Germany was to release official data on factory orders.