Investing.com - The dollar firmed against the euro on Tuesday after solid U.S. housing and consumer confidence data sparked fresh sentiments that the Federal Reserve will continue tapering greenback-weakening monetary stimulus programs this year.
In U.S. trading, EUR/USD was down 0.17% at 1.3622, up from a session low of 1.3613 and off a high of 1.3668.
The pair was likely to find support at 1.3483, the low from Feb. 6, and resistance at 1.3723, Wednesday's high.
The Conference Board reported earlier that its consumer confidence index rose to 83.0 this month from 81.7 in April, in line with market expectations.
Elsewhere, the Standard & Poor’s/ Case-Shiller house price index rose 12.4% in March from a year earlier, beating forecasts for a gain of 11.8% and following a rise of 12.9% in February.
Healthy wholesale pricing data firmed the greenback as well.
The Commerce Department reported earlier U.S. durable goods orders rose 0.8% in April, confounding expectations for a 0.5% fall, after a 3.6% increase in March, whose figure was revised up from a previously estimated 2.9% rise.
Core durable goods orders, which are stripped of volatile transportation items, rose 0.1% last month, missing expectations for a 0.3% increase. Core durable goods orders in March were revised up to a 2.9% gain from a previously estimated 2.4% rise.
Tuesday's data renewed market expectations for the Federal Reserve to continue winding down stimulus measures this year provided recovery remains on track.
Fed stimulus tools such as monthly bond purchases weaken the dollar by suppressing long-term interest rates, sending investors to stocks instead in hopes investing and hiring follow rising equities prices.
Meanwhile across the Atlantic Ocean, sentiment on the euro remained fragile after European Central Bank President Mario Draghi said the bank will do everything feasible for the euro zone economy within its mandate, comments that fueled expectations for additional easing measures.
On Monday, Mario Draghi said the ECB is ready to act should it see signs of a negative inflation spiral taking hold, and indicated that the bank is weighing a wide range of policy options, including interest rate cuts, and liquidity injections or broad-based asset purchases to help shore up the fragile recovery in the euro area.
The euro was up against the pound, with EUR/GBP up 0.06% at 0.8106, and down against the yen, with EUR/JPY down 0.06% at 139.02.
On Wednesday in the euro zone, France is to release data on consumer spending, while Germany is to publish a report on unemployment change. The euro zone is to release data on M3 money supply and private loans.