Investing.com - The euro moved lower against the U.S. dollar on Tuesday, as positive U.S. trade balance and consumer confidence data lent support to the greenback.
Heading into the final week of the year, trading volumes are expected to remain light as many traders already closed books, reducing liquidity in the market which could result in exaggerated moves.
EUR/USD hit 1.0910 during U.S. morning trade, the pair’s lowest since December 24; the pair subsequently consolidated at 1.0929, shedding 0.35%.
The pair was likely to find support at 1.0868, the low of December 23 and resistance at 1.1007, the high of December 16.
The Conference Board said that its consumer confidence index rose to 96.5 in December from 92.6 in November, whose figure was revised from a previously estimated 90.4. Analysts had expected the index to rise to 93.8 this month.
Earlier Tuesday, the U.S. Bureau of Economic Anaysis reported that the goods trade deficit widened to $60.50 billion last month from $58.41 billion in October. Analysts had expected the trade deficit to widen to $60.90 billion in November.
The data came after mixed U.S. economic reports released last week failed to offer clues as to how fast the U.S. central bank will raise interest rates next year.
With the first U.S. rate hike since 2006 out of the way, investors are now focusing on the pace of future rate increases.
The euro was higher against the pound, with EUR/GBP adding 0.22% to 0.7381.