Investing.com - The euro dipped against the dollar on Tuesday after data showed that German business confidence improved in September, but to a lower than expected level, while uncertainty over the future of Fed tapering continued to weigh on sentiment.
EUR/USD hit 1.3476 during European afternoon trade, the lowest since September 18; the pair subsequently consolidated at 1.3478, dipping 0.09%.
The pair was likely to find support at 1.3450 and resistance at 1.3518, the session high.
The euro slipped after data released on Tuesday showed that the German Ifo business climate index ticked up to 107.7 from 107.6 in August, the highest level since March 2012 but still below expectations for a reading of 108.2.
The single currency remained under pressure after European Central Bank President Mario Draghi said Monday the bank is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.
Meanwhile, doubts over the future direction of U.S. monetary policy continued after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.
Speaking Monday, Dudley said the pace of the U.S. economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
The euro was higher against the pound, with EUR/GBP rising 0.38% to 0.8441 and was lower against the yen, with EUR/JPY sliding 0.33% to 132.94.
The U.S. was to release data on house price inflation and consumer confidence later in the trading day.
EUR/USD hit 1.3476 during European afternoon trade, the lowest since September 18; the pair subsequently consolidated at 1.3478, dipping 0.09%.
The pair was likely to find support at 1.3450 and resistance at 1.3518, the session high.
The euro slipped after data released on Tuesday showed that the German Ifo business climate index ticked up to 107.7 from 107.6 in August, the highest level since March 2012 but still below expectations for a reading of 108.2.
The single currency remained under pressure after European Central Bank President Mario Draghi said Monday the bank is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.
Meanwhile, doubts over the future direction of U.S. monetary policy continued after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.
Speaking Monday, Dudley said the pace of the U.S. economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
The euro was higher against the pound, with EUR/GBP rising 0.38% to 0.8441 and was lower against the yen, with EUR/JPY sliding 0.33% to 132.94.
The U.S. was to release data on house price inflation and consumer confidence later in the trading day.