Investing.com - The euro rose to near eight-month highs against the dollar on Tuesday after the investors digested a U.S. government shutdown along with better-than-expected manufacturing data, the latter of which gave the greenback some support.
In U.S. trading on Monday, EUR/USD was up 0.04% at 1.3530, up from a session low of 1.3518 and off from a high of 1.3587.
The pair was likely to find support at 1.3478, Monday's low, and resistance at 1.3711, the high from Feb. 1.
The U.S. Congress on Monday failed to agree on a spending package due to disputes over President Barack Obama's healthcare reform law, which prompted a partial government shutdown that began Tuesday.
Market talk that the Federal Reserve will keep its monthly USD85 billion bond-buying program in place to offset any fiscal uncertainty's effects on recovery weighed on the greenback, though positive manufacturing data offset such sentiments somewhat and bolstered the dollar.
Fed asset purchases weaken the dollar by driving down interest rates to spur recovery.
The Institute for Supply Management reported earlier that its manufacturing purchasing managers’ index rose to 56.2 in September from 55.7 in August.
Analysts had expected the index to decline to 55.0.
Meanwhile in the euro zone, data released earlier showed that the final reading of the bloc’s manufacturing index came in at 51.1 in September, unchanged from the preliminary estimate, but below 26-month high of 51.4 in August.
Separately, Eurostat reported that the euro zone's unemployment rate hit 12.0% last month, while the August rate was revised down to 12.0% from 12.1%.
Analysts were expecting a 12.1% September unemployment rate, which gave the single currency support.
Elsewhere, the euro was down against the pound and down against the yen, with EUR/GBP trading down 0.06% at 0.8351 and EUR/JPY trading down 0.12% at 132.68.
On Wednesday, Spain is to release official data on the change in the number of people unemployed.
The ECB is to announce its benchmark interest rate. The announcement is to be followed by what will be a closely watched press conference with President Mario Draghi.
The U.S. is to release the ADP report on nonfarm payrolls, which leads the closely watched government report on Friday.
In U.S. trading on Monday, EUR/USD was up 0.04% at 1.3530, up from a session low of 1.3518 and off from a high of 1.3587.
The pair was likely to find support at 1.3478, Monday's low, and resistance at 1.3711, the high from Feb. 1.
The U.S. Congress on Monday failed to agree on a spending package due to disputes over President Barack Obama's healthcare reform law, which prompted a partial government shutdown that began Tuesday.
Market talk that the Federal Reserve will keep its monthly USD85 billion bond-buying program in place to offset any fiscal uncertainty's effects on recovery weighed on the greenback, though positive manufacturing data offset such sentiments somewhat and bolstered the dollar.
Fed asset purchases weaken the dollar by driving down interest rates to spur recovery.
The Institute for Supply Management reported earlier that its manufacturing purchasing managers’ index rose to 56.2 in September from 55.7 in August.
Analysts had expected the index to decline to 55.0.
Meanwhile in the euro zone, data released earlier showed that the final reading of the bloc’s manufacturing index came in at 51.1 in September, unchanged from the preliminary estimate, but below 26-month high of 51.4 in August.
Separately, Eurostat reported that the euro zone's unemployment rate hit 12.0% last month, while the August rate was revised down to 12.0% from 12.1%.
Analysts were expecting a 12.1% September unemployment rate, which gave the single currency support.
Elsewhere, the euro was down against the pound and down against the yen, with EUR/GBP trading down 0.06% at 0.8351 and EUR/JPY trading down 0.12% at 132.68.
On Wednesday, Spain is to release official data on the change in the number of people unemployed.
The ECB is to announce its benchmark interest rate. The announcement is to be followed by what will be a closely watched press conference with President Mario Draghi.
The U.S. is to release the ADP report on nonfarm payrolls, which leads the closely watched government report on Friday.