Investing.com - The euro gained against the dollar on Tuesday after global stock markets recovered on Wednesday and fueled appetite for higher-yielding currencies, though trading was volatile as investors still sought direction from the world's central banks over stimulus measures.
A Bank of Japan decision to leave monetary policy unchanged after months of rolling out massive stimulus programs spooked investors worldwide earlier this week by stoking fears the Federal Reserve may follow suit and end years of ultra-loose policies.
In U.S. trading on Wednesday, EUR/USD was up 0.14% at 1.3333, up from a session low of 1.3267 and off from a high of 1.3342.
The pair was likely to find support at 1.3177, Monday's low, and resistance at 1.3434, the high from Feb. 25.
Global monetary uncertainty has roiled markets in recent sessions and fueled volatile swings in currency, stock and bond markets, though investors regained some poise early Wednesday and took up risk-on trading positions that firmed the euro against the dollar though in a volatile fashion.
Still, the dollar enjoy some support albeit in a choppy fashion from investors seeking safe-harbor amid uncertainty over when the Federal Reserve will begin to scale back monetary stimulus measures such as its monthly USD85 billion bond-buying programs, which weakens the greenback to spur recovery.
The U.S. will release weekly data on initial jobless claims on Thursday as well as official data on retail sales, which investors were hoping will provide a more readable weather vane for the markets.
Elsewhere, the single currency enjoyed support after official data revealed that the eurozone's industrial production index for the third consecutive month in April.
Eurostat said industrial production rose by a 0.4% in April from March, defying expectations for a 0.2% decline.
Year-on-year industrial production contracted by 0.6%, better than market calls for a 1.2% contraction.
The euro, meanwhile, was flat against the pound and down against the yen, with EUR/GBP trading up 0.01% at 0.8510, and EUR/JPY trading down 0.42% at 127.34.
In the U.K. earlier, official data revealed that the number of people claiming unemployment benefits fell to its lowest level in two years in May.
The Office for National Statistics said that the claimant count in the U.K. fell by 8,600 in May, better than expectations for a decline of 5,000 people.
The unemployment rate remained steady at 7.8% in April, in line with expectations.
On Thursday, investors will trade on retail sales and weekly jobless claims figures.
A Bank of Japan decision to leave monetary policy unchanged after months of rolling out massive stimulus programs spooked investors worldwide earlier this week by stoking fears the Federal Reserve may follow suit and end years of ultra-loose policies.
In U.S. trading on Wednesday, EUR/USD was up 0.14% at 1.3333, up from a session low of 1.3267 and off from a high of 1.3342.
The pair was likely to find support at 1.3177, Monday's low, and resistance at 1.3434, the high from Feb. 25.
Global monetary uncertainty has roiled markets in recent sessions and fueled volatile swings in currency, stock and bond markets, though investors regained some poise early Wednesday and took up risk-on trading positions that firmed the euro against the dollar though in a volatile fashion.
Still, the dollar enjoy some support albeit in a choppy fashion from investors seeking safe-harbor amid uncertainty over when the Federal Reserve will begin to scale back monetary stimulus measures such as its monthly USD85 billion bond-buying programs, which weakens the greenback to spur recovery.
The U.S. will release weekly data on initial jobless claims on Thursday as well as official data on retail sales, which investors were hoping will provide a more readable weather vane for the markets.
Elsewhere, the single currency enjoyed support after official data revealed that the eurozone's industrial production index for the third consecutive month in April.
Eurostat said industrial production rose by a 0.4% in April from March, defying expectations for a 0.2% decline.
Year-on-year industrial production contracted by 0.6%, better than market calls for a 1.2% contraction.
The euro, meanwhile, was flat against the pound and down against the yen, with EUR/GBP trading up 0.01% at 0.8510, and EUR/JPY trading down 0.42% at 127.34.
In the U.K. earlier, official data revealed that the number of people claiming unemployment benefits fell to its lowest level in two years in May.
The Office for National Statistics said that the claimant count in the U.K. fell by 8,600 in May, better than expectations for a decline of 5,000 people.
The unemployment rate remained steady at 7.8% in April, in line with expectations.
On Thursday, investors will trade on retail sales and weekly jobless claims figures.