Investing.com - The euro fell to two-week lows against the firmer dollar on Tuesday as the dollar was lifted by hopes that a deal to reopen the U.S. government and raise the government borrowing limit is close.
EUR/USD hit 1.3480 during U.S. morning trade, the lowest since September 30; the pair subsequently consolidated at 1.3492, shedding 0.51%.
The pair was likely to find near-term support at 1.3461, the low of September 25 and resistance at 1.3570, the session high.
The dollar found support after Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal to raise the U.S. debt ceiling and reopen the federal government, fuelling hopes that a compromise can be reached.
If an agreement to raise the government borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
However, any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
The single currency shrugged off data showing that German economic sentiment improved more-than-expected in October, rising to the highest level since April 2010.
The ZEW Centre for Economic Research said that its index of German economic sentiment rose by 3.2 points to hit 52.8 in October from September’s reading of 49.6. Analysts had expected an unchanged reading.
Meanwhile, data released on Tuesday showed that an index of manufacturing activity in the New York region came in below expectations this month.
The Federal Reserve Bank of New York said that its general business conditions index fell to 1.52 in the current month from 6.29 in September. Analysts had expected a reading of 7.0.
Elsewhere, the euro was lower against the pound and the yen, with EUR/GBP down 0.30% to 0.8458 and EUR/JPY falling 0.52% to 132.97.
EUR/USD hit 1.3480 during U.S. morning trade, the lowest since September 30; the pair subsequently consolidated at 1.3492, shedding 0.51%.
The pair was likely to find near-term support at 1.3461, the low of September 25 and resistance at 1.3570, the session high.
The dollar found support after Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal to raise the U.S. debt ceiling and reopen the federal government, fuelling hopes that a compromise can be reached.
If an agreement to raise the government borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
However, any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
The single currency shrugged off data showing that German economic sentiment improved more-than-expected in October, rising to the highest level since April 2010.
The ZEW Centre for Economic Research said that its index of German economic sentiment rose by 3.2 points to hit 52.8 in October from September’s reading of 49.6. Analysts had expected an unchanged reading.
Meanwhile, data released on Tuesday showed that an index of manufacturing activity in the New York region came in below expectations this month.
The Federal Reserve Bank of New York said that its general business conditions index fell to 1.52 in the current month from 6.29 in September. Analysts had expected a reading of 7.0.
Elsewhere, the euro was lower against the pound and the yen, with EUR/GBP down 0.30% to 0.8458 and EUR/JPY falling 0.52% to 132.97.