Investing.com - The euro was trading in a tight range against the U.S. dollar on Tuesday, as concerns over political uncertainty in Italy eased, while expectations for more easing by the Federal Reserve weighed on the dollar.
EUR/USD hit 1.2962 during late Asian trade, the pair’s highest since Friday; the pair subsequently consolidated at 1.2943, inching up 0.03%.
The pair was likely to find support at 1.2885, Monday’s low and resistance at 1.3027, the high of November 30.
The euro found some support after Italian Prime Minister Mario Monti played down fears over an imminent resignation, saying he was focused on "completing his mandate" before 2013 elections.
The single currency came under pressure on Monday following reports that Monti was to resign and disgraced former Prime Minister Silvio Berlusconi was to run for office again after his party withdrew support for the government.
Expectations that the Federal Reserve will announce further easing measures at the conclusion of Wednesday’s policy meeting continued to weigh on dollar demand.
Investors were also awaiting fresh developments in negotiations to avoid the U.S. fiscal cliff amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.
The euro was fractionally higher against the pound and the yen, with EUR/GBP easing up 0.04% to 0.8053 and EUR/JPY inching up 0.07% to 106.63.
Later in the day, the ZEW Institute of Economic Research was to release its closely watched index of German economic sentiment, while the U.S. was to publish official data on the trade balance.
EUR/USD hit 1.2962 during late Asian trade, the pair’s highest since Friday; the pair subsequently consolidated at 1.2943, inching up 0.03%.
The pair was likely to find support at 1.2885, Monday’s low and resistance at 1.3027, the high of November 30.
The euro found some support after Italian Prime Minister Mario Monti played down fears over an imminent resignation, saying he was focused on "completing his mandate" before 2013 elections.
The single currency came under pressure on Monday following reports that Monti was to resign and disgraced former Prime Minister Silvio Berlusconi was to run for office again after his party withdrew support for the government.
Expectations that the Federal Reserve will announce further easing measures at the conclusion of Wednesday’s policy meeting continued to weigh on dollar demand.
Investors were also awaiting fresh developments in negotiations to avoid the U.S. fiscal cliff amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.
The euro was fractionally higher against the pound and the yen, with EUR/GBP easing up 0.04% to 0.8053 and EUR/JPY inching up 0.07% to 106.63.
Later in the day, the ZEW Institute of Economic Research was to release its closely watched index of German economic sentiment, while the U.S. was to publish official data on the trade balance.