Investing.com - The euro remained higher against the U.S. dollar in light trade on Tuesday, but gains were capped as expectations for the Federal Reserve to soon begin tapering its stimulus program continued to support the greenback.
EUR/USD hit 1.3593 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3584, rising 0.32%.
The pair was likely to find support at 1.3490, the low of November 25 and resistance at 1.3622, the high of November 29.
Speculation over the future of the Fed's stimulus program persisted after the Institute for Supply Management said Monday that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in November, fuelling optimism over the economic recovery.
The ISM manufacturing purchasing managers’ index rose to 57.3 in November from 56.4 in October. Analysts had expected the index to fall to 55.0.
The euro found support earlier, after official data showed that the number of unemployed people in Spain declined by 2,500 in November, confounding expectations for an increase of 44,300, after a 87,000 climb the previous month.
Sterling was steady against the euro, with EUR/GBP inching up 0.04% to hit 0.8282.
Also Tuesday, the U.K. construction purchasing managers' index rose to 62.6 in November, the highest level since August 2007, from 59.4 in October. Analysts had expected the index to tick down to 59.0.
The report said overall activity rose for the seventh month in a row, with "sharp increases” in new orders and employment, while growth in house-building in November was the fastest in 10 years.
The report came a day after data showed that the manufacturing sector in the U.K. expanded at the fastest rate in 33 months in November. The upbeat fuelled expectations that the Bank of England may tighten monetary policy ahead of other central banks.
EUR/USD hit 1.3593 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3584, rising 0.32%.
The pair was likely to find support at 1.3490, the low of November 25 and resistance at 1.3622, the high of November 29.
Speculation over the future of the Fed's stimulus program persisted after the Institute for Supply Management said Monday that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in November, fuelling optimism over the economic recovery.
The ISM manufacturing purchasing managers’ index rose to 57.3 in November from 56.4 in October. Analysts had expected the index to fall to 55.0.
The euro found support earlier, after official data showed that the number of unemployed people in Spain declined by 2,500 in November, confounding expectations for an increase of 44,300, after a 87,000 climb the previous month.
Sterling was steady against the euro, with EUR/GBP inching up 0.04% to hit 0.8282.
Also Tuesday, the U.K. construction purchasing managers' index rose to 62.6 in November, the highest level since August 2007, from 59.4 in October. Analysts had expected the index to tick down to 59.0.
The report said overall activity rose for the seventh month in a row, with "sharp increases” in new orders and employment, while growth in house-building in November was the fastest in 10 years.
The report came a day after data showed that the manufacturing sector in the U.K. expanded at the fastest rate in 33 months in November. The upbeat fuelled expectations that the Bank of England may tighten monetary policy ahead of other central banks.