Investing.com - The euro remained little changed against the U.S. dollar on Tuesday, as speculation over a fresh round of easing by world central banks weighed on the dollar ahead of monetary policy meetings later in the week.
EUR/USD hit 1.2614 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.2575, inching up 0.01%.
The pair was likely to find support at 1.2567, Monday’s low and resistance at 1.2692, Friday’s high.
Data on Monday showed that the U.S. manufacturing sector had contracted for the first time since July 2009 in June, fuelling speculation that the Federal Reserve could implement a third round of quantitative easing to shore up growth.
The Institute for Supply Management said its index of U.S. manufacturing activity dropped to 49.7 in June, from 53.5 in May.
Meanwhile, investors were looking ahead to the outcome of Bank of England and European Central Bank monetary policy meetings later in the week, as well as U.S. data on nonfarm payrolls on Friday.
The BoE was expected to implement a fresh round of stimulus measures following Thursday’s meeting, while the ECB was expected to announce a rate cut in order to help bolster the region’s economy.
Data on Monday showed that the unemployment rate in the euro zone rose to a record in May, while the manufacturing sector remained firmly in contraction territory in June.
The euro was fractionally higher against the pound, with EUR/GBP inching up 0.06% to 0.8018, and was stronger against the yen, with EUR/JPY adding 0.50% to trade at 100.48.
Also Tuesday, official data showed that U.S. factory orders rose by a seasonally adjusted 0.7% in May, above expectations for a 0.2% gain, increasing for the first time in three months.
EUR/USD hit 1.2614 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.2575, inching up 0.01%.
The pair was likely to find support at 1.2567, Monday’s low and resistance at 1.2692, Friday’s high.
Data on Monday showed that the U.S. manufacturing sector had contracted for the first time since July 2009 in June, fuelling speculation that the Federal Reserve could implement a third round of quantitative easing to shore up growth.
The Institute for Supply Management said its index of U.S. manufacturing activity dropped to 49.7 in June, from 53.5 in May.
Meanwhile, investors were looking ahead to the outcome of Bank of England and European Central Bank monetary policy meetings later in the week, as well as U.S. data on nonfarm payrolls on Friday.
The BoE was expected to implement a fresh round of stimulus measures following Thursday’s meeting, while the ECB was expected to announce a rate cut in order to help bolster the region’s economy.
Data on Monday showed that the unemployment rate in the euro zone rose to a record in May, while the manufacturing sector remained firmly in contraction territory in June.
The euro was fractionally higher against the pound, with EUR/GBP inching up 0.06% to 0.8018, and was stronger against the yen, with EUR/JPY adding 0.50% to trade at 100.48.
Also Tuesday, official data showed that U.S. factory orders rose by a seasonally adjusted 0.7% in May, above expectations for a 0.2% gain, increasing for the first time in three months.