Investing.com - The euro was steady against the U.S. dollar on Tuesday, hovering near three-and-a-half month lows as markets were jittery ahead of the European Central Bank's policy meeting later in the week.
EUR/USD hit 1.3607 during late Asian trade, the session high; the pair subsequently consolidated at 1.3605, easing up 0.06%.
The pair was likely to find support at 1.3529, the low of January 23 and resistance at 1.3668, the high of May 27.
Sentiment on the single currency was vulnerable after data on Friday showing that the annual rate of inflation in Italy and Spain slowed in May added to expectations that the ECB will take steps to tackle low consumer price growth, which is threatening the fragile recovery in the euro zone.
Last week, ECB President Mario Draghi said the bank was aware of the risks of persistently low inflation and was prepared to take steps to get euro zone inflation back to its target, the latest indication that the bank is on course to ease monetary policy next week.
Meanwhile, the dollar remained under pressure after the Institute of Supply Management reported on Monday that its manufacturing purchasing managers' index ticked down to 53.2 in May, from a reading of 54.9 the previous month, confouding expectations for a rise to 55.5.
The euro little changed against the pound, with EUR/GBP inching up 0.06% to 0.8123.
Later in the day, the U.S. was to produce data on factory orders.