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Forex - EUR/USD higher ahead of Fed policy decision

Published 09/17/2013, 07:50 AM
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Investing.com - The euro was higher against the dollar on Tuesday after the release better-than-forecast German economic sentiment data, while investors awaited the outcome of this week’s Federal Reserve policy meeting.

EUR/USD hit 1.3368 during European afternoon trade, the session high; the pair subsequently consolidated at 1.3356, gaining 0.17%.

The pair was likely to find support at 1.3300 and near-term resistance at 1.3384, Monday’s high and a three-week high.

The euro found support after a report showed that the closely watched ZEW index of German economic sentiment rose to the highest level since April 2010 in September.

The ZEW index of German economic sentiment rose to 49.6 in September from 42.0 last month, on the back of the improved economic outlook for the euro zone. Analysts had forecast a reading of 46.0.

The ZEW index of euro zone economic sentiment jumped to 58.6 in September, the highest reading since September 2009 and up from 44.0 in August.

The dollar remained under pressure ahead of the outcome of the Fed’s two-day policy meeting on Wednesday, amid expectations for a small reduction to the bank’s USD85 billion-a-month stimulus program.

Elsewhere, the euro was slightly higher against the pound, with EUR/GBP inching up 0.07% to 0.8392 and was higher against the yen, with EUR/JPY advancing 0.24% to 132.40.

In the U.K., data released on Tuesday showed that consumer price inflation ticked down to 2.7% on a year-over-year basis in August from 2.8% in July, in line with economists’ forecasts.

Consumer prices rose by 0.4% on the month in August, compared to expectations for a 0.5% increase. 

The U.S. was to release data on consumer prices later in the trading day.




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