Investing.com - The euro weakened against the dollar in choppy trade on Tuesday as investors sold and jumped to the sidelines to see if an E.U. summit would provide direction on the economy, while Greece's debt restructuring talks with private creditors continued with no resolution.
EUR/USD hit 1.3136 in early Asian trading on Tuesday, down 0.6%, firming from a session low 0f 1.3134 and off from a high of 1.3146.
The pair sought to test support at 1.3077, Monday's low, and resistance at 1.3211, Monday's high.
An E.U. summit on the economy is convening in Brussels, and traders were looking for a signal from the continent's leaders over their ability to navigate the currency zone out of the crisis.
Failure to do so could prove bearish for the euro while welcome news would send the unit firming.
Until then, the market will remain in standby mode, especially since Greece has not officially struck a deal with private creditors over renegotiating the country's debt.
Greece is required to come to an agreement with private creditors if Athens wishes to draw down on bailout facilities and make sovereign bond payments in March.
"We seem to limp from one summit to save the euro to another," said Simon Derrick, chief currency strategist at Bank of New York Mellon Corp. in London, according to Bloomberg.
"It is prudent in the face of this uncertainty to take a more defensive stance toward the euro. There is a pretty decent chance that in the first half of this year we’ll have a low of $1.20."
Germany Economy Minister Philipp Roesler reportedly told Bild newspaper that Athens should give up control of its budgetary procedures to outsiders, a suggestion at which Greece bristled and promptly rejected.
Furthermore, yields in Portuguese government bond auctions spiked, fanning fears that the debt crisis has infected Lisbon.
Italy served as the bright spot earlier, a yields fell there.
In the U.S., personal spending was unchanged in December, although incomes rose by 0.5% in December from November, according to the Commerce Department.
The figures outpaced market expectations.
The euro, meanwhile, was down but steady against the pound and up against the yen, with EUR/GBP falling 0.01% to 0.8365 and EUR/JPY gaining 0.04% at 100.40.
Later Tuesday, Switzerland will release a report by UBS on its consumptions indicator, a combined reading of five economic indicators.
Germany will unveil official data on retail sales as well as data on employment changes.
Meanwhile, the eurozone will release its latest unemployment rates as well.
In the U.K., the Bank of England will release data on net lending to individuals as well as money supply figures.
Later in the day, Canada is to release official GDP data as well as a report on raw materials price inflation, a leading indicator of consumer inflation.
The U.S. is to produce government data on employment cost inflation, a key gauge of consumer inflation, followed by industry data on house price inflation and the purchasing managers’ index in Chicago. The country is also to release data on consumer confidence.
Also in the U.S., the S&P/Case-Shiller House Price Index will release as well.
EUR/USD hit 1.3136 in early Asian trading on Tuesday, down 0.6%, firming from a session low 0f 1.3134 and off from a high of 1.3146.
The pair sought to test support at 1.3077, Monday's low, and resistance at 1.3211, Monday's high.
An E.U. summit on the economy is convening in Brussels, and traders were looking for a signal from the continent's leaders over their ability to navigate the currency zone out of the crisis.
Failure to do so could prove bearish for the euro while welcome news would send the unit firming.
Until then, the market will remain in standby mode, especially since Greece has not officially struck a deal with private creditors over renegotiating the country's debt.
Greece is required to come to an agreement with private creditors if Athens wishes to draw down on bailout facilities and make sovereign bond payments in March.
"We seem to limp from one summit to save the euro to another," said Simon Derrick, chief currency strategist at Bank of New York Mellon Corp. in London, according to Bloomberg.
"It is prudent in the face of this uncertainty to take a more defensive stance toward the euro. There is a pretty decent chance that in the first half of this year we’ll have a low of $1.20."
Germany Economy Minister Philipp Roesler reportedly told Bild newspaper that Athens should give up control of its budgetary procedures to outsiders, a suggestion at which Greece bristled and promptly rejected.
Furthermore, yields in Portuguese government bond auctions spiked, fanning fears that the debt crisis has infected Lisbon.
Italy served as the bright spot earlier, a yields fell there.
In the U.S., personal spending was unchanged in December, although incomes rose by 0.5% in December from November, according to the Commerce Department.
The figures outpaced market expectations.
The euro, meanwhile, was down but steady against the pound and up against the yen, with EUR/GBP falling 0.01% to 0.8365 and EUR/JPY gaining 0.04% at 100.40.
Later Tuesday, Switzerland will release a report by UBS on its consumptions indicator, a combined reading of five economic indicators.
Germany will unveil official data on retail sales as well as data on employment changes.
Meanwhile, the eurozone will release its latest unemployment rates as well.
In the U.K., the Bank of England will release data on net lending to individuals as well as money supply figures.
Later in the day, Canada is to release official GDP data as well as a report on raw materials price inflation, a leading indicator of consumer inflation.
The U.S. is to produce government data on employment cost inflation, a key gauge of consumer inflation, followed by industry data on house price inflation and the purchasing managers’ index in Chicago. The country is also to release data on consumer confidence.
Also in the U.S., the S&P/Case-Shiller House Price Index will release as well.