Investing.com - The dollar fell against the euro and most other currencies on Tuesday after investors locked in gains from Monday's better-than-expected manufacturing report and sold the greenback for profits.
In U.S. trading on Tuesday, EUR/USD was up 0.34% at 1.3586, up from a session low of 1.3524 and off from a high of 1.3595.
The pair was likely to find support at 1.3490, the low from Nov. 25, and resistance at 1.3616, Monday's high.
The dollar shot up on Monday after the Institute for Supply Management reported that U.S. manufacturing activity in November expanded at its fastest pace since April of 2011, fueling hopes that U.S. recovery is gaining steam.
The ISM manufacturing purchasing managers’ index rose to 57.3 in November from 56.4 in October.
Analysts were expecting the index to fall to 55.0, and the surprise uptick sparked demand for the dollar.
The report stoked market expectations for the Federal Reserve to begin scaling back its monthly asset-purchasing program in early 2014.
Fed bond purchases tend to keep the dollar weak by driving down long-term interest rates to spur recovery.
The euro, meanwhile, rose after Spain reported that the number of unemployed individuals in the country declined by 2,500 in November, defying more pessimistic consensus forecasts calling for an increase of 44,300 and much better than October's 87,000 increase.
The single currency was flat against the pound and down against the yen, with EUR/GBP trading down 0.01% at 0.8278 and EUR/JPY trading down 0.15% at 139.20.
On Wednesday, the euro zone is to release data on retail sales, while Spain and Italy are to publish their services PMIs.
The U.S. is to release the ADP report on private sector-job creation, while the Institute of Supply Management is to release its service-sector purchasing managers' index. The U.S is also to publish data on new home sales and data on its trade balance.
In U.S. trading on Tuesday, EUR/USD was up 0.34% at 1.3586, up from a session low of 1.3524 and off from a high of 1.3595.
The pair was likely to find support at 1.3490, the low from Nov. 25, and resistance at 1.3616, Monday's high.
The dollar shot up on Monday after the Institute for Supply Management reported that U.S. manufacturing activity in November expanded at its fastest pace since April of 2011, fueling hopes that U.S. recovery is gaining steam.
The ISM manufacturing purchasing managers’ index rose to 57.3 in November from 56.4 in October.
Analysts were expecting the index to fall to 55.0, and the surprise uptick sparked demand for the dollar.
The report stoked market expectations for the Federal Reserve to begin scaling back its monthly asset-purchasing program in early 2014.
Fed bond purchases tend to keep the dollar weak by driving down long-term interest rates to spur recovery.
The euro, meanwhile, rose after Spain reported that the number of unemployed individuals in the country declined by 2,500 in November, defying more pessimistic consensus forecasts calling for an increase of 44,300 and much better than October's 87,000 increase.
The single currency was flat against the pound and down against the yen, with EUR/GBP trading down 0.01% at 0.8278 and EUR/JPY trading down 0.15% at 139.20.
On Wednesday, the euro zone is to release data on retail sales, while Spain and Italy are to publish their services PMIs.
The U.S. is to release the ADP report on private sector-job creation, while the Institute of Supply Management is to release its service-sector purchasing managers' index. The U.S is also to publish data on new home sales and data on its trade balance.