Investing.com – The euro erased gains against the U.S. dollar in volatile trade on Tuesday, pulling away from a three-day high, following the release of mixed U.S. housing data and as investors began focusing on the outcome of the Federal Reserve’s extended policy setting meeting on Wednesday.
EUR/USD retreated from 1.3743, the pair’s highest since last Thursday, to hit 1.3681 during U.S. morning trade, slipping 0.03%.
The pair was likely to find support at 1.3493, the low of September 12 and a seven-month low and resistance at 1.3720, Monday’s high.
Official data showed that U.S. building permits rose to a seven-month high of 0.62 million in August, while housing starts fell to 0.57 million, worse than expectations for a decline to 0.59 million.
Earlier in the day, the euro was broadly lower after Standard & Poor’s downgraded its debt rating on Italy by one notch, citing weak economic growth and increasing political difficulties.
But the single currency regained ground as market sentiment strengthened after auctions of Greek and Spanish government debt met with solid investor demand and after news that Greece repaid EUR769 million in bond coupons due Tuesday.
Elsewhere, the euro was fractionally higher against the pound, with EUR/GBP inching up 0.05% to hit 0.8788.
Talks between Greek officials and international creditors to discuss how Athens can access the EUR8 billion tranche of aid due next month were to continue later in the day.
EUR/USD retreated from 1.3743, the pair’s highest since last Thursday, to hit 1.3681 during U.S. morning trade, slipping 0.03%.
The pair was likely to find support at 1.3493, the low of September 12 and a seven-month low and resistance at 1.3720, Monday’s high.
Official data showed that U.S. building permits rose to a seven-month high of 0.62 million in August, while housing starts fell to 0.57 million, worse than expectations for a decline to 0.59 million.
Earlier in the day, the euro was broadly lower after Standard & Poor’s downgraded its debt rating on Italy by one notch, citing weak economic growth and increasing political difficulties.
But the single currency regained ground as market sentiment strengthened after auctions of Greek and Spanish government debt met with solid investor demand and after news that Greece repaid EUR769 million in bond coupons due Tuesday.
Elsewhere, the euro was fractionally higher against the pound, with EUR/GBP inching up 0.05% to hit 0.8788.
Talks between Greek officials and international creditors to discuss how Athens can access the EUR8 billion tranche of aid due next month were to continue later in the day.