Investing.com - The euro rose against dollar on Tuesday as investors felt the currency fell enough due to ongoing European uncertainty and cuts to global growth forecasts made by multilateral financial institutions.
In Asian trading on Tuesday, EUR/USD was trading up 0.10% at 1.2981, up from a session low of 1.2974, and off from a high of 1.2985.
The pair was likely to test support at 1.2938, Monday's low, and resistance at 1.2985, the earlier high.
The euro slid earlier against its U.S. counterpart as investors awaited the outcome of a meeting of E.U. ministers this week as well as German Chancellor Angela Merkel's first trip to Greece since 2007.
Merkel's visit takes place as representatives from Greece's Troika of international creditors — the ECB, the European Commission and the International Monetary Fund — mull whether the country is meeting terms required to receive its next shot of financial aid.
Hard economic data didn't support the euro either.
The Sentix index of investor confidence for the eurozone for October improved albeit less than expected, ticking up to -22 from a reading of -23.2 the previous month.
Analysts had expected the index to improve to -20.8.
Meanwhile in Europe's largest economy, Germany's industrial production fell 0.5% in August, less than an expected decline of 0.8%, but still off from a 1.2% increase in July.
Macroeconomic forecasts sparked safe-haven dollar demand as well.
The World Bank reported earlier that the eurozone economy will expand 0.2% in 2013, down from a 0.7% forecast made in May, which prompted investors to sell the single currency.
Bearish views on Asia, however, fueled strong demand for the safe-haven dollar.
The World Bank earlier cuts its 2012 growth forecast for developing Asia-Pacific economies to 7.2% from a May forecast of 7.6%.
The World Bank also said China's economy will growth 7.7% this year, down from a May forecast of 8.2%.
The International Monetary Fund, meanwhile, cut its 2012 global growth forecast to 3.3% from a July estimate of 3.5%.
Meanwhile, the European Stability Mechanism is now up and running with EUR200 billion in resources to assist troubled countries, though Spain has officially yet to request a bailout, which kept the euro lower.
By early Asian trading, however, investors felt the euro had weakened enough and snapped up nicely priced positions amid bottom-fishing.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.03% at 0.8094, and EUR/JPY trading up 0.12% at 101.70.
Later Tuesday, eurozone finance ministers will continue to hold talks to discuss ways to firewall and extinguish the debt crisis.
In Asian trading on Tuesday, EUR/USD was trading up 0.10% at 1.2981, up from a session low of 1.2974, and off from a high of 1.2985.
The pair was likely to test support at 1.2938, Monday's low, and resistance at 1.2985, the earlier high.
The euro slid earlier against its U.S. counterpart as investors awaited the outcome of a meeting of E.U. ministers this week as well as German Chancellor Angela Merkel's first trip to Greece since 2007.
Merkel's visit takes place as representatives from Greece's Troika of international creditors — the ECB, the European Commission and the International Monetary Fund — mull whether the country is meeting terms required to receive its next shot of financial aid.
Hard economic data didn't support the euro either.
The Sentix index of investor confidence for the eurozone for October improved albeit less than expected, ticking up to -22 from a reading of -23.2 the previous month.
Analysts had expected the index to improve to -20.8.
Meanwhile in Europe's largest economy, Germany's industrial production fell 0.5% in August, less than an expected decline of 0.8%, but still off from a 1.2% increase in July.
Macroeconomic forecasts sparked safe-haven dollar demand as well.
The World Bank reported earlier that the eurozone economy will expand 0.2% in 2013, down from a 0.7% forecast made in May, which prompted investors to sell the single currency.
Bearish views on Asia, however, fueled strong demand for the safe-haven dollar.
The World Bank earlier cuts its 2012 growth forecast for developing Asia-Pacific economies to 7.2% from a May forecast of 7.6%.
The World Bank also said China's economy will growth 7.7% this year, down from a May forecast of 8.2%.
The International Monetary Fund, meanwhile, cut its 2012 global growth forecast to 3.3% from a July estimate of 3.5%.
Meanwhile, the European Stability Mechanism is now up and running with EUR200 billion in resources to assist troubled countries, though Spain has officially yet to request a bailout, which kept the euro lower.
By early Asian trading, however, investors felt the euro had weakened enough and snapped up nicely priced positions amid bottom-fishing.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.03% at 0.8094, and EUR/JPY trading up 0.12% at 101.70.
Later Tuesday, eurozone finance ministers will continue to hold talks to discuss ways to firewall and extinguish the debt crisis.