Investing.com - The euro held steady to slightly lower against the dollar on Tuesday as markets remained in standby mode awaiting the Federal Reserve's announcement on U.S. monetary policy on Wednesday.
Lackluster inflation rates released on both sides of the Atlantic failed to roil or rally the pair, while investors also shrugged off healthy German sentiment data.
In U.S. trading on Tuesday, EUR/USD was down 0.08% at 1.3752, up from a session low of 1.3723 and off from a high of 1.3782.
The pair was likely to find support at 1.3710, Friday's low, and resistance at 1.3798, Monday's high.
The Department of Labor reported earlier that the U.S. consumer price index came in flat in November after falling 0.1% in October. Analysts were calling for a 0.1% uptick.
The annual rate of inflation rose 1.2% in November, just shy of expectations for 1.3% reading but still up from a four-year low of 1.0% in October.
U.S. core inflation, stripped of volatile food and energy items, rose 0.2% in November from October, beating expectations for a 0.1% gain, while the year-on-year rate for November rose 1.7%, which met consensus forecasts.
Meanwhile in Europe, the ZEW index of German economic sentiment rose to 62.0 in December from 54.6 in November. It was the highest level since April 2006. Economists were predicting the index to tick up to 55.0 this month.
Also in Europe, Eurostat, the statistical arm of the European Union, reported that the euro area's monthly November CPI contracted 0.1% but rose 0.9% on year, both figures matching market forecast.
Markets took the data in stride, keeping an eye towards Wednesday, when the Fed will release its statement on interest rates and monetary policy.
Investors were eager for the U.S. central bank to announce plans to either let stand or trim the size of its USD85 billion in monthly bond purchases, a monetary stimulus policy known as quantitative easing that weakens the dollar by driving down interest rates to spur recovery.
The single currency was up against the pound and down against the yen, with EUR/GBP trading up 0.21% at 0.8460 and EUR/JPY trading down 0.43% at 141.15.
On Wednesday, the pair will move on the Fed's statement on U.S. monetary policy. Elsewhere, the U.S. is to release data on building permits and housing starts.
Also on Wednesday, the Ifo Institute is to publish a report on German business climate, a leading indicator of economic health.
Lackluster inflation rates released on both sides of the Atlantic failed to roil or rally the pair, while investors also shrugged off healthy German sentiment data.
In U.S. trading on Tuesday, EUR/USD was down 0.08% at 1.3752, up from a session low of 1.3723 and off from a high of 1.3782.
The pair was likely to find support at 1.3710, Friday's low, and resistance at 1.3798, Monday's high.
The Department of Labor reported earlier that the U.S. consumer price index came in flat in November after falling 0.1% in October. Analysts were calling for a 0.1% uptick.
The annual rate of inflation rose 1.2% in November, just shy of expectations for 1.3% reading but still up from a four-year low of 1.0% in October.
U.S. core inflation, stripped of volatile food and energy items, rose 0.2% in November from October, beating expectations for a 0.1% gain, while the year-on-year rate for November rose 1.7%, which met consensus forecasts.
Meanwhile in Europe, the ZEW index of German economic sentiment rose to 62.0 in December from 54.6 in November. It was the highest level since April 2006. Economists were predicting the index to tick up to 55.0 this month.
Also in Europe, Eurostat, the statistical arm of the European Union, reported that the euro area's monthly November CPI contracted 0.1% but rose 0.9% on year, both figures matching market forecast.
Markets took the data in stride, keeping an eye towards Wednesday, when the Fed will release its statement on interest rates and monetary policy.
Investors were eager for the U.S. central bank to announce plans to either let stand or trim the size of its USD85 billion in monthly bond purchases, a monetary stimulus policy known as quantitative easing that weakens the dollar by driving down interest rates to spur recovery.
The single currency was up against the pound and down against the yen, with EUR/GBP trading up 0.21% at 0.8460 and EUR/JPY trading down 0.43% at 141.15.
On Wednesday, the pair will move on the Fed's statement on U.S. monetary policy. Elsewhere, the U.S. is to release data on building permits and housing starts.
Also on Wednesday, the Ifo Institute is to publish a report on German business climate, a leading indicator of economic health.