Investing.com - The euro fell to six-week lows against the dollar on Tuesday as investors looked ahead to the upcoming European Central Bank meeting and key U.S. employment data later in the week.
EUR/USD hit 1.3158 during European afternoon trade, the lowest since July 22; the pair subsequently consolidated at 1.3169, shedding 0.18%.
The pair was likely to find support at 1.3133, the low of July 22 and resistance at 1.3196, the session high.
The euro remained under pressure amid expectations that the ECB would reiterate its pledge to keep rates on hold at current record low levels following its policy meeting on Thursday.
Demand for the dollar was underpinned by expectations that the Federal Reserve will start to unwind its stimulus program at its upcoming policy meeting on September 17-18.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.
Elsewhere, the euro was weaker against the pound, with EUR/GBP losing 0.22% to trade at 0.8468.
Sterling was boosted after data showed that activity in the U.K. construction sector expanded at the fastest rate in six years in August.
Markit and the Chartered Institute of Purchasing & Supply said the U.K. construction purchasing managers' index rose to 59.1 from 57.0 in July. Economists had forecast a reading of 58.3.
The data came one day after a report showed that manufacturing activity in the U.K. jumped to a 30-month high in August, fuelling hopes that the Bank of England may raise interest rates sooner than it has indicated.
The single currency was little changed against the yen, with EUR/JPY inching up 0.02% to 131.05. The euro briefly fell as low as 130.66 against the yen after Russia’s news agency said a rocket launch was detected in the Mediterranean.
The yen pared back gains after Israel later said it carried out a joint missile test with the U.S. in the area.
EUR/USD hit 1.3158 during European afternoon trade, the lowest since July 22; the pair subsequently consolidated at 1.3169, shedding 0.18%.
The pair was likely to find support at 1.3133, the low of July 22 and resistance at 1.3196, the session high.
The euro remained under pressure amid expectations that the ECB would reiterate its pledge to keep rates on hold at current record low levels following its policy meeting on Thursday.
Demand for the dollar was underpinned by expectations that the Federal Reserve will start to unwind its stimulus program at its upcoming policy meeting on September 17-18.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.
Elsewhere, the euro was weaker against the pound, with EUR/GBP losing 0.22% to trade at 0.8468.
Sterling was boosted after data showed that activity in the U.K. construction sector expanded at the fastest rate in six years in August.
Markit and the Chartered Institute of Purchasing & Supply said the U.K. construction purchasing managers' index rose to 59.1 from 57.0 in July. Economists had forecast a reading of 58.3.
The data came one day after a report showed that manufacturing activity in the U.K. jumped to a 30-month high in August, fuelling hopes that the Bank of England may raise interest rates sooner than it has indicated.
The single currency was little changed against the yen, with EUR/JPY inching up 0.02% to 131.05. The euro briefly fell as low as 130.66 against the yen after Russia’s news agency said a rocket launch was detected in the Mediterranean.
The yen pared back gains after Israel later said it carried out a joint missile test with the U.S. in the area.