Investing.com - The euro was up against the broadly weaker U.S. dollar on Tuesday, as stronger-than-expected Chinese growth data eased concerns over the impact of the euro zone’s debt crisis on global growth.
EUR/USD hit 1.2758 during late Asian trade, the pair’s highest since Friday; the pair subsequently consolidated at 1.2743, gaining 0.60%.
The pair was likely to find support at 1.2625, Monday’s low and a 16-month trough and resistance at 1.2844, last Thursday’s high.
Chinese gross domestic product grew at an annualized rate of 8.9% in the fourth quarter, slowing from the previous quarter’s 9.1% rate, but slightly better than expectations for an 8.8% increase.
The data came after Standard & Poor’s cut the triple-A rating of the euro zone’s bailout fund, the European Financial Stability Facility, by one notch, following Friday’s downgrade of nine out of 17 euro zone sovereigns, including France.
Meanwhile, the threat of a default by Greece continued, as talks aimed at negotiating a restructuring of the country’s debts remained deadlocked, amid disagreements over a bond swap with private creditors.
The euro was higher against the pound, with EUR/GBP rising 0.24% to hit 0.8285.
Later in the day, the euro zone was to produce a report on the German ZEW economic sentiment index, as well as official data on consumer price inflation.
Also Tuesday, the U.S. was to produce a report on manufacturing activity in New York State.
EUR/USD hit 1.2758 during late Asian trade, the pair’s highest since Friday; the pair subsequently consolidated at 1.2743, gaining 0.60%.
The pair was likely to find support at 1.2625, Monday’s low and a 16-month trough and resistance at 1.2844, last Thursday’s high.
Chinese gross domestic product grew at an annualized rate of 8.9% in the fourth quarter, slowing from the previous quarter’s 9.1% rate, but slightly better than expectations for an 8.8% increase.
The data came after Standard & Poor’s cut the triple-A rating of the euro zone’s bailout fund, the European Financial Stability Facility, by one notch, following Friday’s downgrade of nine out of 17 euro zone sovereigns, including France.
Meanwhile, the threat of a default by Greece continued, as talks aimed at negotiating a restructuring of the country’s debts remained deadlocked, amid disagreements over a bond swap with private creditors.
The euro was higher against the pound, with EUR/GBP rising 0.24% to hit 0.8285.
Later in the day, the euro zone was to produce a report on the German ZEW economic sentiment index, as well as official data on consumer price inflation.
Also Tuesday, the U.S. was to produce a report on manufacturing activity in New York State.