Investing.com - The euro held steady against against the dollar early Tuesday, erasing earlier losses stemming from uncertainty surrounding a German court ruling as to whether participating in European bailouts violates the country's constitution.
In Asian trading on Tuesday, EUR/USD was trading up 0.02% at 1.2761, up from a low of 1.2755 and off from a high of 1.2804.
The pair was likely to find support at 1.2627, Friday’s low, and resistance at 1.2804, the earlier high.
A weak U.S. jobs report for August sent the euro soaring against the greenback before profit-taking sent it down this week.
By early Tuesday, more investors sold the single currency to await a ruling from a German court, which is mulling whether participation in eurozone bailout activities violates the country's constitution, though the unit regained some composure in early Asian trading.
The court will unveil its ruling later this week.
Meanwhile, the U.S. Federal Reserve will open a two-day monetary policy meeting on Wednesday and expectations continued to build that the U.S. central bank will announce a third round of quantitative easing.
Under quantitative easing, the Fed buys assets such as Treasury holdings or mortgage-backed securities held by banks, pumping the economy full of fresh liquidity in a way that pushes down interest rates to encourage investing and hiring.
Such accommodative policies tend to weaken the dollar by design.
Meanwhile in Europe, the single currency continued to see support on ECB President Mario Draghi's recent announcement that monetary authorities will buy sovereign bonds with maturities of up to three years to lower borrowing costs in debt-ridden countries such as Spain.
The bond-buying program improved investors sentiment across the currency zone.
Market research group Sentix reported earlier that its index of investor confidence improved by 7.1 points to minus 23.2 in September from a reading of minus 30.3 in August.
Analysts had expected the index to contract by 0.4 points to minus 30.7 in September.
The euro, meanwhile, was flat against the pound and down against the yen, with EUR/GBP trading at 0.7980, and EUR/JPY trading down 0.02% at 99.86.
Later Tuesday, the U.S. will release its latest trade balance data.
In Asian trading on Tuesday, EUR/USD was trading up 0.02% at 1.2761, up from a low of 1.2755 and off from a high of 1.2804.
The pair was likely to find support at 1.2627, Friday’s low, and resistance at 1.2804, the earlier high.
A weak U.S. jobs report for August sent the euro soaring against the greenback before profit-taking sent it down this week.
By early Tuesday, more investors sold the single currency to await a ruling from a German court, which is mulling whether participation in eurozone bailout activities violates the country's constitution, though the unit regained some composure in early Asian trading.
The court will unveil its ruling later this week.
Meanwhile, the U.S. Federal Reserve will open a two-day monetary policy meeting on Wednesday and expectations continued to build that the U.S. central bank will announce a third round of quantitative easing.
Under quantitative easing, the Fed buys assets such as Treasury holdings or mortgage-backed securities held by banks, pumping the economy full of fresh liquidity in a way that pushes down interest rates to encourage investing and hiring.
Such accommodative policies tend to weaken the dollar by design.
Meanwhile in Europe, the single currency continued to see support on ECB President Mario Draghi's recent announcement that monetary authorities will buy sovereign bonds with maturities of up to three years to lower borrowing costs in debt-ridden countries such as Spain.
The bond-buying program improved investors sentiment across the currency zone.
Market research group Sentix reported earlier that its index of investor confidence improved by 7.1 points to minus 23.2 in September from a reading of minus 30.3 in August.
Analysts had expected the index to contract by 0.4 points to minus 30.7 in September.
The euro, meanwhile, was flat against the pound and down against the yen, with EUR/GBP trading at 0.7980, and EUR/JPY trading down 0.02% at 99.86.
Later Tuesday, the U.S. will release its latest trade balance data.