Investing.com - The euro rose against the dollar on Tuesday after investors locked in gains stemming from Friday's U.S. strong jobs report and sold the greenback for profits, jumping to the sidelines to await the Federal Reserve's decision next week on interest rates and monetary policy.
In U.S. trading on Tuesday, EUR/USD was up 0.23% at 1.3771, up from a session low of 1.3695 and off from a high of 1.37951.
The pair was likely to find support at 1.3524, last Tuesday's low, and resistance at 1.3818, the high from Oct. 28.
Investors sold the greenback for profits, which pushed the euro higher Tuesday.
On Friday, the Department of Labor said the U.S. economy added 203,000 jobs in November, beating expectations for a 180,000 increase and up from a downwardly revised 200,000 rise the previous month.
In the private sector, 196,000 jobs were added last month compared to expectations for a 180,000 rise, after an increase of 214,000 in October.
The report also said the U.S. unemployment rate fell to 7.0% in November, from 7.3% in October, beating expectations for a downtick to 7.2%.
Also on Friday, the preliminary Thomson Reuters/University of Michigan consumer sentiment index increased to 82.5 in December from 75.1 the previous month, far surpassing expectations for a 76.0 reading.
The numbers rekindled expectations that the Federal Reserve remains on track to announce plans to taper the pace of its USD85 billion in monthly bond purchases, which weaken the dollar to spur recovery.
The Fed will hold a monetary policy meeting from Dec. 17-18, and uncertainty over whether or not the U.S. central bank will announce or hint at plans to taper then allowed the dollar to fall on Tuesday.
Fed St. Louis President James Bullard said on Monday that the chances of a Fed decision to taper asset purchases is increasing due to improvements taking place in the labor market.
The euro, meanwhile, continued to see support due to a surprise European Central Bank decision to hold off on implementing fresh monetary stimulus measures at its December meeting, including negative interest rates, after surprising investors with a rate cut in November.
In a speech on Tuesday, ECB President Mario Draghi urged governments to complete a banking union, saying it was crucial at both a national and European level.
The single currency was up against the pound and down against the yen, with EUR/GBP trading up 0.20% at 0.8380 and EUR/JPY trading down 0.10% at 141.74.
In U.S. trading on Tuesday, EUR/USD was up 0.23% at 1.3771, up from a session low of 1.3695 and off from a high of 1.37951.
The pair was likely to find support at 1.3524, last Tuesday's low, and resistance at 1.3818, the high from Oct. 28.
Investors sold the greenback for profits, which pushed the euro higher Tuesday.
On Friday, the Department of Labor said the U.S. economy added 203,000 jobs in November, beating expectations for a 180,000 increase and up from a downwardly revised 200,000 rise the previous month.
In the private sector, 196,000 jobs were added last month compared to expectations for a 180,000 rise, after an increase of 214,000 in October.
The report also said the U.S. unemployment rate fell to 7.0% in November, from 7.3% in October, beating expectations for a downtick to 7.2%.
Also on Friday, the preliminary Thomson Reuters/University of Michigan consumer sentiment index increased to 82.5 in December from 75.1 the previous month, far surpassing expectations for a 76.0 reading.
The numbers rekindled expectations that the Federal Reserve remains on track to announce plans to taper the pace of its USD85 billion in monthly bond purchases, which weaken the dollar to spur recovery.
The Fed will hold a monetary policy meeting from Dec. 17-18, and uncertainty over whether or not the U.S. central bank will announce or hint at plans to taper then allowed the dollar to fall on Tuesday.
Fed St. Louis President James Bullard said on Monday that the chances of a Fed decision to taper asset purchases is increasing due to improvements taking place in the labor market.
The euro, meanwhile, continued to see support due to a surprise European Central Bank decision to hold off on implementing fresh monetary stimulus measures at its December meeting, including negative interest rates, after surprising investors with a rate cut in November.
In a speech on Tuesday, ECB President Mario Draghi urged governments to complete a banking union, saying it was crucial at both a national and European level.
The single currency was up against the pound and down against the yen, with EUR/GBP trading up 0.20% at 0.8380 and EUR/JPY trading down 0.10% at 141.74.