Investing.com - The euro was trading close to seven-month highs against the dollar on Tuesday as the U.S. government began a partial shutdown after Congress failed to reach an agreement on a budget for the next fiscal year.
EUR/USD hit 1.3560 during late Asian trade, the session high; the pair subsequently consolidated at 1.3559, gaining 0.26%.
The pair was likely to find support at 1.3476, Monday’s low and resistance at 1.3567, the high of September 19 and a seven-month high.
The dollar remained broadly lower as the U.S. government began a partial shutdown after lawmakers failed to reach an agreement on a new budget. It is the first partial government shutdown in the U.S. for 17 years.
Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.
Meanwhile, investors were closely watching political developments in Italy, with Prime Minister Enrico Letta due before parliament for a vote of confidence on Wednesday after Silvio Berlusconi pulled his ministers out of the coalition government on Saturday.
The euro was almost unchanged against the pound, with EUR/GBP dipping 0.03% to 0.8353 and was higher against the yen, with EUR/JPY rising 0.23% to 133.15.
In Japan, Prime Minister Shinzo Abe said Tuesday his government will raise the rate of sales tax to 8% from 1 April next year, from the current rate of 5%, as a way to reduce the country’s public debt.
EUR/USD hit 1.3560 during late Asian trade, the session high; the pair subsequently consolidated at 1.3559, gaining 0.26%.
The pair was likely to find support at 1.3476, Monday’s low and resistance at 1.3567, the high of September 19 and a seven-month high.
The dollar remained broadly lower as the U.S. government began a partial shutdown after lawmakers failed to reach an agreement on a new budget. It is the first partial government shutdown in the U.S. for 17 years.
Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.
Meanwhile, investors were closely watching political developments in Italy, with Prime Minister Enrico Letta due before parliament for a vote of confidence on Wednesday after Silvio Berlusconi pulled his ministers out of the coalition government on Saturday.
The euro was almost unchanged against the pound, with EUR/GBP dipping 0.03% to 0.8353 and was higher against the yen, with EUR/JPY rising 0.23% to 133.15.
In Japan, Prime Minister Shinzo Abe said Tuesday his government will raise the rate of sales tax to 8% from 1 April next year, from the current rate of 5%, as a way to reduce the country’s public debt.