Investing.com – The euro was trading below a five-month high against the U.S. dollar on Tuesday, on the view that expectations for a euro zone interest rate hike later in the week were priced in by investors.
EUR/USD hit 1.4170 during late Asian trade, the pair’s lowest since Friday; the pair subsequently consolidated at 1.4173, shedding 0.32%.
The pair was likely to find support at 1.4114, last Thursday’s low and resistance at 1.4267, Monday’s high and a five-month high.
The European Central Bank was widely expected to raise interest rates on Thursday for the first time since October 2008.
The dollar found support after Federal Reserve Chairman Ben Bernanke said Monday that commodity prices are being driven primarily by global supply and demand and don’t threaten a major acceleration of inflation.
“As long as inflation expectations remain stable and well anchored, which in my view remains the case, and as long as commodity-price increases eventually stabilize, then this will not be reflected in a standard increase in inflation,” Bernanke said.
The euro was also slightly lower against the pound, with EUR/GBP sliding 0.18% to hit 0.8798.
Later in the day, the euro zone was to publish official data on retail sales. Meanwhile, the U.S. was to publish data on service sector growth while the Fed was to publish the minutes of its most recent policy setting meeting.
EUR/USD hit 1.4170 during late Asian trade, the pair’s lowest since Friday; the pair subsequently consolidated at 1.4173, shedding 0.32%.
The pair was likely to find support at 1.4114, last Thursday’s low and resistance at 1.4267, Monday’s high and a five-month high.
The European Central Bank was widely expected to raise interest rates on Thursday for the first time since October 2008.
The dollar found support after Federal Reserve Chairman Ben Bernanke said Monday that commodity prices are being driven primarily by global supply and demand and don’t threaten a major acceleration of inflation.
“As long as inflation expectations remain stable and well anchored, which in my view remains the case, and as long as commodity-price increases eventually stabilize, then this will not be reflected in a standard increase in inflation,” Bernanke said.
The euro was also slightly lower against the pound, with EUR/GBP sliding 0.18% to hit 0.8798.
Later in the day, the euro zone was to publish official data on retail sales. Meanwhile, the U.S. was to publish data on service sector growth while the Fed was to publish the minutes of its most recent policy setting meeting.