Forex - EUR/USD turns lower as dollar sentiment firms up

Published 10/26/2010, 03:50 AM
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EUR/GBP
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Investing.com – The euro edged lower against the U.S. dollar on Tuesday, falling to a 2-day low, as the dollar firmed up on the sense that expectations for further monetary easing by the Federal Reserve were already priced into the market.

EUR/USD hit 1.3907 during early European trade, the pair’s lowest since October 22; the pair subsequently consolidated at 1.3949, shedding 0.10%.

The pair was likely to find support at 1.3857, Friday’s low and resistance at 1.4157, the high of October 15 and an 8-month high.

Earlier in the day, data showed that Germany’s Gfk consumer climate outlook for November remained unchanged at 4.9, after rising for in the four preceding months. Analysts had expected the outlook for November to rise to 5.2.

The economic expectation indicator rose by 2.5 points in October to 56, up for the fifth consecutive month. The report said that consumers expect that the German economy will continue to recover based on positive trends in the labor market.

Also Tuesday, official data showed that German import prices rose more-than-expected in September.

Meanwhile, the euro was down against the pound, with EUR/GBP shedding 0.40% to hit 0.8846.

Later in the day, the U.S. was to release industry data on consumer confidence and house prices as well as official data on manufacturing.

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