Investing.com - The euro was little changed against the dollar on Tuesday as investors awaited the Federal Reserve’s upcoming policy decision amid expectations for a small reduction to the bank’s stimulus program.
EUR/USD hit 1.3368 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3341, inching up 0.06%.
The pair was likely to find support at 1.3300 and near-term resistance at 1.3384, Monday’s high and a three-week high.
Investors were focused on the outcome of the Fed’s two-day policy meeting, which concludes on Wednesday. The central bank was expected to announce plans to start rolling back its USD85 billion-a-month asset purchase program.
The euro rose to session highs against the dollar earlier in the session after a report showed that the closely watched ZEW index of German economic sentiment rose to the highest level since April 2010 in September.
The German ZEW index rose to 49.6 in September from 42.0 last month, on the back of the improved economic outlook for the euro zone. Analysts had forecast a reading of 46.0.
The ZEW index of euro zone economic sentiment jumped to 58.6 in September, the highest reading since September 2009 and up from 44.0 in August.
The greenback showed little reaction after data released on Tuesday showed that U.S. consumer prices rose 0.1% in August, below forecasts for a 0.2% increase.
Consumer inflation rose by 1.5% on a year-over-year basis, undershooting expectations for a 1.6% gain.
Core inflation edged up 0.1% in August, bringing the annual rate of core inflation to 1.8%, in line with forecasts.
Elsewhere, the single currency was steady against the pound, with EUR/GBP inching up 0.02% to 0.8388 and was higher against the yen, with EUR/JPY advancing 0.35% to 132.54.
In the U.K., data released on Tuesday showed that consumer price inflation ticked down to 2.7% on a year-over-year basis in August from 2.8% in July, in line with expectations.
EUR/USD hit 1.3368 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3341, inching up 0.06%.
The pair was likely to find support at 1.3300 and near-term resistance at 1.3384, Monday’s high and a three-week high.
Investors were focused on the outcome of the Fed’s two-day policy meeting, which concludes on Wednesday. The central bank was expected to announce plans to start rolling back its USD85 billion-a-month asset purchase program.
The euro rose to session highs against the dollar earlier in the session after a report showed that the closely watched ZEW index of German economic sentiment rose to the highest level since April 2010 in September.
The German ZEW index rose to 49.6 in September from 42.0 last month, on the back of the improved economic outlook for the euro zone. Analysts had forecast a reading of 46.0.
The ZEW index of euro zone economic sentiment jumped to 58.6 in September, the highest reading since September 2009 and up from 44.0 in August.
The greenback showed little reaction after data released on Tuesday showed that U.S. consumer prices rose 0.1% in August, below forecasts for a 0.2% increase.
Consumer inflation rose by 1.5% on a year-over-year basis, undershooting expectations for a 1.6% gain.
Core inflation edged up 0.1% in August, bringing the annual rate of core inflation to 1.8%, in line with forecasts.
Elsewhere, the single currency was steady against the pound, with EUR/GBP inching up 0.02% to 0.8388 and was higher against the yen, with EUR/JPY advancing 0.35% to 132.54.
In the U.K., data released on Tuesday showed that consumer price inflation ticked down to 2.7% on a year-over-year basis in August from 2.8% in July, in line with expectations.