Investing.com - The euro edged lower against the U.S. dollar on Tuesday, after disappointing German consumer climate data added to concerns over further debt contagion in the euro zone while dovish remarks by Federal Reserve Chairman Ben Bernanke continued to weigh on the greenback.
EUR/USD hit 1.3334 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3335, slipping 0.17%.
The pair was likely to find support at 1.3281, the low of March 1 and resistance at 1.3398, the high of November 28.
The euro came under pressure after a Gfk report showed that an index of consumer climate for Germany fell unexpectedly in March, ticking down to 5.9 from 6.0 the previous month.
Analysts had expected the index to rise to 6.2 in March.
Investors were also jittery amid concerns over the handling of Spain’s debt woes after Italian Prime Minister Mario Monti warned over the weekend that the threat of contagion from Madrid could cause the debt crisis in the euro zone to flare up again.
Meanwhile, the dollar remained under pressure after Fed Chairman Ben Bernanke said Monday that further monetary accommodation is needed to bring about big gains in the U.S. jobs market, which he described as “far from normal,” despite a recent improvement.
Elsewhere, the single currency was almost unchanged against the pound with EUR/GBP edging down 0.01% to hit 0.8363.
Later in the day, the U.S. was to release a Standard & Poor’s/Case Shiller report on house price inflation report, as well as industry data on consumer confidence.
EUR/USD hit 1.3334 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3335, slipping 0.17%.
The pair was likely to find support at 1.3281, the low of March 1 and resistance at 1.3398, the high of November 28.
The euro came under pressure after a Gfk report showed that an index of consumer climate for Germany fell unexpectedly in March, ticking down to 5.9 from 6.0 the previous month.
Analysts had expected the index to rise to 6.2 in March.
Investors were also jittery amid concerns over the handling of Spain’s debt woes after Italian Prime Minister Mario Monti warned over the weekend that the threat of contagion from Madrid could cause the debt crisis in the euro zone to flare up again.
Meanwhile, the dollar remained under pressure after Fed Chairman Ben Bernanke said Monday that further monetary accommodation is needed to bring about big gains in the U.S. jobs market, which he described as “far from normal,” despite a recent improvement.
Elsewhere, the single currency was almost unchanged against the pound with EUR/GBP edging down 0.01% to hit 0.8363.
Later in the day, the U.S. was to release a Standard & Poor’s/Case Shiller report on house price inflation report, as well as industry data on consumer confidence.