Investing.com - The euro pared gains against the U.S. dollar on Tuesday, following the release of dismal U.S. manufacturing data, but the single currency remained supported ahead of a liquidity boosting operation by the European Central Bank.
EUR/USD pulled back from 1.3462, the session high to hit 1.3428 during European afternoon trade, still up 0.22%.
The pair was likely to find support at 1.3356, last Friday’s low and resistance at 1.3485, Friday’s high and a 12-week high.
The U.S. Commerce Department said orders for long lasting manufactured goods fell by the most in three years in January.
Durable goods orders dropped 4.0% after rising by 2.1% in December, far worse than forecasts for a 0.8% decline.
Core durable goods orders, which excludes transportation items, tumbled by a seasonally adjusted 3.2% in January, confounding expectations for a flat reading.
A separate report showed that consumer price inflation in Germany rose more-than-expected in February, accelerating by 0.7%, compared to expectations for an increase of 0.5%.
Risk appetite remained supported as markets looked ahead to Wednesday's launch of the ECB’s second three-year long-term refinancing operation, after a similar liquidity injection in December averted a credit crunch and eased pressure on peripheral euro zone bond markets.
Portugal’s finance minister said earlier that the country had passed the third review of its EUR78 billion bailout by the troika, which is composed of the ECB, European Union and International Monetary Fund, and added that the country’s fiscal targets for 2012 would be met in spite of deteriorating economic conditions.
The euro was higher against the pound but dipped against the yen, with EUR/GBP easing up 0.09% to hit 0.8473 and EUR/JPY dipping 0.02% to hit 107.96.
Later in the day, the Conference Board was to release a report on U.S. consumer confidence.
EUR/USD pulled back from 1.3462, the session high to hit 1.3428 during European afternoon trade, still up 0.22%.
The pair was likely to find support at 1.3356, last Friday’s low and resistance at 1.3485, Friday’s high and a 12-week high.
The U.S. Commerce Department said orders for long lasting manufactured goods fell by the most in three years in January.
Durable goods orders dropped 4.0% after rising by 2.1% in December, far worse than forecasts for a 0.8% decline.
Core durable goods orders, which excludes transportation items, tumbled by a seasonally adjusted 3.2% in January, confounding expectations for a flat reading.
A separate report showed that consumer price inflation in Germany rose more-than-expected in February, accelerating by 0.7%, compared to expectations for an increase of 0.5%.
Risk appetite remained supported as markets looked ahead to Wednesday's launch of the ECB’s second three-year long-term refinancing operation, after a similar liquidity injection in December averted a credit crunch and eased pressure on peripheral euro zone bond markets.
Portugal’s finance minister said earlier that the country had passed the third review of its EUR78 billion bailout by the troika, which is composed of the ECB, European Union and International Monetary Fund, and added that the country’s fiscal targets for 2012 would be met in spite of deteriorating economic conditions.
The euro was higher against the pound but dipped against the yen, with EUR/GBP easing up 0.09% to hit 0.8473 and EUR/JPY dipping 0.02% to hit 107.96.
Later in the day, the Conference Board was to release a report on U.S. consumer confidence.