Investing.com – The euro tested a key resistance of 1.3150 against the U.S. dollar on Tuesday, ahead of a rate statement by the U.S. Federal Reserve's Open Market Committee.
EUR/USD hit 1.3149 during European afternoon trade, the pair's highest since September 17; the pair subsequently consolidated at 1.3123, gaining 0.47%.
The pair was likely to find support at 1.2975, last Friday's low and short-term resistance at 1.3150.
Later Tuesday, the U.S. Federal Reserve was to announce its benchmark interest rate. The announcement was to be followed by a closely watched statement on U.S. monetary policy and economic outlook.
Earlier in the day, official U.S. data showed that building permits and housing starts rose more-than-expected in August.
In a report, the Census Bureau said the number of housing starts rose to a seasonally adjusted 0.60 million in August, up from a revised 0.54 million in July. Analysts had expected housing starts to rise to 0.55 million in August.
The report also said that the number of building permits issued in August rose to a seasonally adjusted 0.57 million, up from a revised 0.56 million in July. Analysts had expected building permits to remain unchanged in August.
The euro was also up against the pound, with EUR/GBP gaining 0.41% to hit 0.8436.
Also Tuesday, several strong euro zone bond auctions helped eased lingering fears over the region's sovereign debt issues.
EUR/USD hit 1.3149 during European afternoon trade, the pair's highest since September 17; the pair subsequently consolidated at 1.3123, gaining 0.47%.
The pair was likely to find support at 1.2975, last Friday's low and short-term resistance at 1.3150.
Later Tuesday, the U.S. Federal Reserve was to announce its benchmark interest rate. The announcement was to be followed by a closely watched statement on U.S. monetary policy and economic outlook.
Earlier in the day, official U.S. data showed that building permits and housing starts rose more-than-expected in August.
In a report, the Census Bureau said the number of housing starts rose to a seasonally adjusted 0.60 million in August, up from a revised 0.54 million in July. Analysts had expected housing starts to rise to 0.55 million in August.
The report also said that the number of building permits issued in August rose to a seasonally adjusted 0.57 million, up from a revised 0.56 million in July. Analysts had expected building permits to remain unchanged in August.
The euro was also up against the pound, with EUR/GBP gaining 0.41% to hit 0.8436.
Also Tuesday, several strong euro zone bond auctions helped eased lingering fears over the region's sovereign debt issues.