Investing.com - The euro pushed higher against the dollar on Tuesday as traders took profits following the dollar’s recent gains but speculation over negative deposit rates capped the euro’s gains.
EUR/USD hit 1.3027 during late Asian trade, the pair’s highest since Friday, the pair subsequently consolidated at 1.3003, gaining 0.22%.
The pair was likely to find support at 1.2940, Monday’s low and resistance at 1.3100.
The dollar turned broadly lower on Tuesday as investors locked in profits ahead of a raft of U.S. economic data later in the week, including reports on industrial production, housing starts, inflation and economic sentiment.
Demand for the dollar continued to be underpinned by speculation over a possible near-term exit from the Federal Reserve’s asset purchase program after recent U.S. data indicated that the economic outlook is improving.
Data on Monday showed that U.S. retail sales unexpectedly rose 0.1% in April.
The upside for the euro looked likely to remain limited after a senior European Central Bank policymaker said Monday the bank could cut deposit rates into negative territory.
The euro was higher against the pound, with EUR/GBP easing up 0.11% to 0.8489, but slipped lower against the yen, with EUR/JPY down 0.16% to 131.89.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday, while the euro zone was to release official data on industrial production.
EUR/USD hit 1.3027 during late Asian trade, the pair’s highest since Friday, the pair subsequently consolidated at 1.3003, gaining 0.22%.
The pair was likely to find support at 1.2940, Monday’s low and resistance at 1.3100.
The dollar turned broadly lower on Tuesday as investors locked in profits ahead of a raft of U.S. economic data later in the week, including reports on industrial production, housing starts, inflation and economic sentiment.
Demand for the dollar continued to be underpinned by speculation over a possible near-term exit from the Federal Reserve’s asset purchase program after recent U.S. data indicated that the economic outlook is improving.
Data on Monday showed that U.S. retail sales unexpectedly rose 0.1% in April.
The upside for the euro looked likely to remain limited after a senior European Central Bank policymaker said Monday the bank could cut deposit rates into negative territory.
The euro was higher against the pound, with EUR/GBP easing up 0.11% to 0.8489, but slipped lower against the yen, with EUR/JPY down 0.16% to 131.89.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday, while the euro zone was to release official data on industrial production.