Investing.com - The euro re-approached last week’s 23 month highs against the dollar on Tuesday and moved higher against the yen and the pound following remarks by European Central Bank Governing Council member Ewald Nowotny.
EUR/USD hit 1.3813 during U.S. morning trade, the session high, the pair subsequently consolidated at 1.3808, rising 0.16%.
The pair was likely to find support at 1.3740, the low of October 23 and resistance at 1.3831, Friday’s high and a 23-month high.
The euro strengthened across the board after Nowotny said the ECB was unlikely to cut the benchmark interest rate or the deposit rate at next week’s policy meeting. He also said the central bank had no instruments to use against the strong euro.
The euro rose to two-month highs against the sterling following the remarks, with EUR/GBP advancing 0.50% to 0.8582.
The single currency also gained ground against the yen, with EUR/JPY rising 0.35% to 135.09.
The dollar remained under pressure after data on Tuesday showed that U.S. consumer confidence fell more sharply than forecast in October, reinforcing the view that the Federal Reserve will keep monetary policy unchanged at its latest policy setting meeting on Wednesday.
The Conference Board said its index of consumer confidence dropped to 71.2 in October from an upwardly revised reading of 80.2 in September, as concerns over the U.S. government shutdown and the debt ceiling crisis weighed.
Analysts had expected the index to fall to 75.0 this month.
The data came on the heels of a report showing that U.S. retail sales fell 0.1% in September, compared to expectations for a 0.1% increase. Core retail sales, which exclude automobile sales, edged up 0.4% last month, in line with expectations.
A separate report showed that U.S. producer price inflation ticked down 0.1% in September, missing forecasts for a 0.2% increase. Core inflation edged up 0.1%; in line with expectations.
The data cemented expectations that the Fed will maintain its stimulus program well into the first quarter of next year, in order to safeguard the faltering economic recovery.
EUR/USD hit 1.3813 during U.S. morning trade, the session high, the pair subsequently consolidated at 1.3808, rising 0.16%.
The pair was likely to find support at 1.3740, the low of October 23 and resistance at 1.3831, Friday’s high and a 23-month high.
The euro strengthened across the board after Nowotny said the ECB was unlikely to cut the benchmark interest rate or the deposit rate at next week’s policy meeting. He also said the central bank had no instruments to use against the strong euro.
The euro rose to two-month highs against the sterling following the remarks, with EUR/GBP advancing 0.50% to 0.8582.
The single currency also gained ground against the yen, with EUR/JPY rising 0.35% to 135.09.
The dollar remained under pressure after data on Tuesday showed that U.S. consumer confidence fell more sharply than forecast in October, reinforcing the view that the Federal Reserve will keep monetary policy unchanged at its latest policy setting meeting on Wednesday.
The Conference Board said its index of consumer confidence dropped to 71.2 in October from an upwardly revised reading of 80.2 in September, as concerns over the U.S. government shutdown and the debt ceiling crisis weighed.
Analysts had expected the index to fall to 75.0 this month.
The data came on the heels of a report showing that U.S. retail sales fell 0.1% in September, compared to expectations for a 0.1% increase. Core retail sales, which exclude automobile sales, edged up 0.4% last month, in line with expectations.
A separate report showed that U.S. producer price inflation ticked down 0.1% in September, missing forecasts for a 0.2% increase. Core inflation edged up 0.1%; in line with expectations.
The data cemented expectations that the Fed will maintain its stimulus program well into the first quarter of next year, in order to safeguard the faltering economic recovery.