Investing.com - The euro was steady against the U.S. dollar in thin year-end trade on Tuesday, although recent news the Federal Reserve will be tapering its stimulus program next year continued to support the greenback.
EUR/USD hit 1.3729 during late Asian trade, the session low; the pair subsequently consolidated at 1.3794, easing 0.04%.
The pair was likely to find support at 1.3729, Monday's low and resistance at 1.3894, the high of December 27 and a 26-month high.
The dollar remained supported amid expectations for further stimulus tapering by the Federal Reserve. The U.S. central bank will start reducing its bond-buying stimulus program by USD10 billion a month in January, amid indications of an improving U.S. economy.
The single currency had gained some ground on Friday, after European Central Bank Governing Council member Jens Weidmann said keeping interest rates low may endanger political reforms.
According to Germany’s Bild newspaper, Weidmann said low inflation shouldn’t be used to justify loose monetary policy. "We must take care to raise interest rates again in a timely manner should inflation pressures build," he reportedly added.
Separately, ECB President Mario Draghi said he sees no urgent need to cut the euro zone's main interest rate further and sees no signs of deflation.
The euro was little changed against the pound, with EUR/GBP inching up 0.01% to 0.8365.
Later in the day, the U.S. was to produce private sector data on consumer confidence and house price inflation, as well as a report on manufacturing activity in the Chicago region.
EUR/USD hit 1.3729 during late Asian trade, the session low; the pair subsequently consolidated at 1.3794, easing 0.04%.
The pair was likely to find support at 1.3729, Monday's low and resistance at 1.3894, the high of December 27 and a 26-month high.
The dollar remained supported amid expectations for further stimulus tapering by the Federal Reserve. The U.S. central bank will start reducing its bond-buying stimulus program by USD10 billion a month in January, amid indications of an improving U.S. economy.
The single currency had gained some ground on Friday, after European Central Bank Governing Council member Jens Weidmann said keeping interest rates low may endanger political reforms.
According to Germany’s Bild newspaper, Weidmann said low inflation shouldn’t be used to justify loose monetary policy. "We must take care to raise interest rates again in a timely manner should inflation pressures build," he reportedly added.
Separately, ECB President Mario Draghi said he sees no urgent need to cut the euro zone's main interest rate further and sees no signs of deflation.
The euro was little changed against the pound, with EUR/GBP inching up 0.01% to 0.8365.
Later in the day, the U.S. was to produce private sector data on consumer confidence and house price inflation, as well as a report on manufacturing activity in the Chicago region.