Investing.com - The euro was steady against the dollar on Tuesday as hopes for a deal to reopen the U.S. government and raise the government borrowing limit ahead of a deadline to avoid a default supported sentiment.
EUR/USD hit 1.3571 during late Asian trade, the session high; the pair subsequently consolidated at 1.3564, inching up 0.03%.
The pair was likely to find support at 1.3517, the low of October 11 and resistance at 1.3631, the high of October 4.
Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached. If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
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.
Elsewhere, the euro inched higher against the pound, with EUR/GBP edging up 0.06% to 0.8489 and slipped lower against the yen, with EUR/JPY sliding 0.12% to 133.51.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday, while the U.S. was to release a report on manufacturing activity in the Empire state.
EUR/USD hit 1.3571 during late Asian trade, the session high; the pair subsequently consolidated at 1.3564, inching up 0.03%.
The pair was likely to find support at 1.3517, the low of October 11 and resistance at 1.3631, the high of October 4.
Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached. If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
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.
Elsewhere, the euro inched higher against the pound, with EUR/GBP edging up 0.06% to 0.8489 and slipped lower against the yen, with EUR/JPY sliding 0.12% to 133.51.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday, while the U.S. was to release a report on manufacturing activity in the Empire state.