Investing.com – The euro gave up early gains against the U.S. dollar on Tuesday, pulling away from a three-day high as comments by Spain’s economy minister dampened expectations for bold actions by European leaders on tackling the region’s debt crisis.
EUR/USD retreated from 1.3570, the pair’s highest since September 22, to hit 1.3523 during European early afternoon trade, slipping 0.08%.
The pair was likely to find support at 1.3361, Monday’s low and an eight-month low and short-term resistance at 1.3600, the high of September 22.
Speaking earlier, Spain's Economy Minister Elena Salgado said plans to enlarge the euro zone bailout fund, the European Financial Stability Facility, to EUR2 trillion were not on the table.
Later in the week, several euro member states were to vote on expanding the role of the EFSF. The measures have to be passed by all of the currency bloc's governments before steps to expand its role can be implemented.
The euro was also hit by mounting expectations that the European Central Bank may cut interest rates to support growth in the region, after an ECB official said Monday that cuts could not be ruled out.
The euro was also lower against the pound, with EUR/GBP easing down 0.08% to hit 0.8686.
Also Tuesday, a report showed that the Gfk index of German consumer climate remained unchanged at 5.2 in August. Analysts had expected the index to decline to 5.1 last month.
EUR/USD retreated from 1.3570, the pair’s highest since September 22, to hit 1.3523 during European early afternoon trade, slipping 0.08%.
The pair was likely to find support at 1.3361, Monday’s low and an eight-month low and short-term resistance at 1.3600, the high of September 22.
Speaking earlier, Spain's Economy Minister Elena Salgado said plans to enlarge the euro zone bailout fund, the European Financial Stability Facility, to EUR2 trillion were not on the table.
Later in the week, several euro member states were to vote on expanding the role of the EFSF. The measures have to be passed by all of the currency bloc's governments before steps to expand its role can be implemented.
The euro was also hit by mounting expectations that the European Central Bank may cut interest rates to support growth in the region, after an ECB official said Monday that cuts could not be ruled out.
The euro was also lower against the pound, with EUR/GBP easing down 0.08% to hit 0.8686.
Also Tuesday, a report showed that the Gfk index of German consumer climate remained unchanged at 5.2 in August. Analysts had expected the index to decline to 5.1 last month.