Investing.com - The euro fell to two-week lows against the firmer dollar on Tuesday as the greenback was boosted by hopes for a deal to reopen the U.S. government and raise the debt ceiling ahead of a deadline to avoid a default.
EUR/USD hit 1.3480 during European afternoon trade, the lowest since September 30; the pair subsequently consolidated at 1.3493, shedding 0.50%.
The pair was likely to find support at 1.3461, the low of September 25 and resistance at 1.3570, the session high.
The dollar found support after Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal to raise the U.S. debt ceiling and reopen the federal government, fuelling hopes that a compromise can be reached.
If an agreement to raise the government borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
However, any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
The single currency shrugged off data showing that German economic sentiment improved more-than-expected in October, rising to the highest level since April 2010.
The ZEW Centre for Economic Research said that its index of German economic sentiment rose by 3.2 points to hit 52.8 in October from September’s reading of 49.6. Analysts had expected an unchanged reading.
Elsewhere, the euro was lower against the pound and the yen, with EUR/GBP down 0.18% to 0.8468 and EUR/JPY falling 0.62% to 132.84.
The U.S. was to release a report on manufacturing activity in the Empire state later in the trading day.
EUR/USD hit 1.3480 during European afternoon trade, the lowest since September 30; the pair subsequently consolidated at 1.3493, shedding 0.50%.
The pair was likely to find support at 1.3461, the low of September 25 and resistance at 1.3570, the session high.
The dollar found support after Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal to raise the U.S. debt ceiling and reopen the federal government, fuelling hopes that a compromise can be reached.
If an agreement to raise the government borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
However, any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
The single currency shrugged off data showing that German economic sentiment improved more-than-expected in October, rising to the highest level since April 2010.
The ZEW Centre for Economic Research said that its index of German economic sentiment rose by 3.2 points to hit 52.8 in October from September’s reading of 49.6. Analysts had expected an unchanged reading.
Elsewhere, the euro was lower against the pound and the yen, with EUR/GBP down 0.18% to 0.8468 and EUR/JPY falling 0.62% to 132.84.
The U.S. was to release a report on manufacturing activity in the Empire state later in the trading day.