Investing.com - The euro held gains against the dollar in subdued trade on Tuesday after data showed that U.S. consumer confidence unexpectedly fell to seven month low in November.
EUR/USD was up 0.21% to 1.3544 during U.S. morning trade, from 1.3515 on Monday.
The pair was likely to find support at 1.3489, Monday’s low and resistance at 1.3590.
The Conference Board said its index of U.S. consumer confidence declined to 70.4 in November from 72.4 in October. Analysts had expected the index to rise to 72.9 this month.
Earlier Tuesday, data showed that the number of building permits issues in the U.S. rose to the highest level since January 2008 in October.
The Commerce Department said that the number of building permits issued rose 6.2% to a seasonally adjusted 1.034 million from September’s total of 0.970 million.
Analysts expected building permits to decline to 0.940 million units in October.
The euro shrugged off dovish remarks by European Central Bank board member Benoit Coeure, who said Tuesday that negative deposit rates are still a possibility.
Investors were turning their attention to preliminary euro zone inflation data, due out on Friday, amid expectations that the annual rate of inflation would rise to 0.8% in November, from October’s four year low of 0.7%.
The slowdown in euro zone inflation last month prompted the ECB to cut interest rates to a record low 0.25% at its November meeting.
The euro was steady against the yen, with EUR/JPY dipping 0.03% to 137.38, holding below the four-year high of 137.94 struck on Monday.
The yen remained under pressure amid heightened expectations that the Bank of Japan will implement further stimulus measures next year.
The yen found some support after Tuesday’s minutes of the BoJ’s October meeting showed some policymakers see a greater downside risk to the economy.
The BoJ noted that the economy is following the path to the bank’s 2% inflation target at a moderate pace. The members also said that there remains a high degree of uncertainty over the medium to long term inflation outlook.
EUR/USD was up 0.21% to 1.3544 during U.S. morning trade, from 1.3515 on Monday.
The pair was likely to find support at 1.3489, Monday’s low and resistance at 1.3590.
The Conference Board said its index of U.S. consumer confidence declined to 70.4 in November from 72.4 in October. Analysts had expected the index to rise to 72.9 this month.
Earlier Tuesday, data showed that the number of building permits issues in the U.S. rose to the highest level since January 2008 in October.
The Commerce Department said that the number of building permits issued rose 6.2% to a seasonally adjusted 1.034 million from September’s total of 0.970 million.
Analysts expected building permits to decline to 0.940 million units in October.
The euro shrugged off dovish remarks by European Central Bank board member Benoit Coeure, who said Tuesday that negative deposit rates are still a possibility.
Investors were turning their attention to preliminary euro zone inflation data, due out on Friday, amid expectations that the annual rate of inflation would rise to 0.8% in November, from October’s four year low of 0.7%.
The slowdown in euro zone inflation last month prompted the ECB to cut interest rates to a record low 0.25% at its November meeting.
The euro was steady against the yen, with EUR/JPY dipping 0.03% to 137.38, holding below the four-year high of 137.94 struck on Monday.
The yen remained under pressure amid heightened expectations that the Bank of Japan will implement further stimulus measures next year.
The yen found some support after Tuesday’s minutes of the BoJ’s October meeting showed some policymakers see a greater downside risk to the economy.
The BoJ noted that the economy is following the path to the bank’s 2% inflation target at a moderate pace. The members also said that there remains a high degree of uncertainty over the medium to long term inflation outlook.