Investing.com - The euro came off session lows against the dollar on Tuesday after data showed that U.S. consumer confidence fell more sharply than forecast in October, reinforcing the view that the Federal Reserve will keep monetary policy unchanged on Wednesday.
EUR/USD pulled away from 1.3754, the session low, to hit 1.3800 during U.S. morning trade, edging up 0.11%.
The pair was likely to find support at 1.3740, the low of October 23 and resistance at 1.3831, Friday’s high and a 23-month high.
The Conference Board said its index of consumer confidence dropped to 71.2 in October from an upwardly revised reading of 80.2 in September, as concerns over the U.S. government shutdown and the debt ceiling crisis weighed.
Analysts had expected the index to fall to 75.0 this month.
The data came on the heels of a report showing that U.S. retail sales fell 0.1% in September, compared to expectations for a 0.1% increase. Core retail sales, which exclude automobile sales, edged up 0.4% last month, in line with expectations.
A separate report showed that U.S. producer price inflation ticked down 0.1% in September, missing forecasts for a 0.2% increase. Core inflation edged up 0.1%; in line with expectations.
The data cemented expectations that the Fed will maintain its stimulus program well into the first quarter of next year, in order to safeguard the faltering economic recovery.
Elsewhere, the euro rose to two-month highs against the pound, with EUR/GBP advancing 0.39% to 0.8573 and hit session highs against the yen, with EUR/JPY up 0.34% to 135.08.
EUR/USD pulled away from 1.3754, the session low, to hit 1.3800 during U.S. morning trade, edging up 0.11%.
The pair was likely to find support at 1.3740, the low of October 23 and resistance at 1.3831, Friday’s high and a 23-month high.
The Conference Board said its index of consumer confidence dropped to 71.2 in October from an upwardly revised reading of 80.2 in September, as concerns over the U.S. government shutdown and the debt ceiling crisis weighed.
Analysts had expected the index to fall to 75.0 this month.
The data came on the heels of a report showing that U.S. retail sales fell 0.1% in September, compared to expectations for a 0.1% increase. Core retail sales, which exclude automobile sales, edged up 0.4% last month, in line with expectations.
A separate report showed that U.S. producer price inflation ticked down 0.1% in September, missing forecasts for a 0.2% increase. Core inflation edged up 0.1%; in line with expectations.
The data cemented expectations that the Fed will maintain its stimulus program well into the first quarter of next year, in order to safeguard the faltering economic recovery.
Elsewhere, the euro rose to two-month highs against the pound, with EUR/GBP advancing 0.39% to 0.8573 and hit session highs against the yen, with EUR/JPY up 0.34% to 135.08.