Investing.com - The euro was almost unchanged against the dollar on Tuesday as investors remained cautious after the Organization for Economic Co-operation and Development cut its forecast for global growth next year.
EUR/USD dipped 0.04% to 1.3499, down from Monday’s close of 1.3504 during European afternoon trade.
The pair was likely to find support at 1.3475 and resistance at 1.3546, the high of November 6.
Market sentiment was hit after the OECD said the global economy will grow by 2.7% this year and 3.6% in 2014, down from forecasts of 3.1% and 4% in May.
OECD trimmed its forecast for euro zone growth to 1% in 2014, from the May estimate of 1.1%. However, it upgraded its forecast for the currency bloc for 2013 from a contraction of 0.6% to a contraction of 0.4%.
It said "weakness" in the euro zone banking system was a "major drag" on growth and warned that there is an increasing risk of deflation in the currency bloc.
The euro shrugged off a report showing that the ZEW index of German economic sentiment rose to a four-year high this month.
The ZEW index of German economic sentiment rose to 54.6 in November from October’s reading of 52.8. Economists had expected the index improve to 54.0.
The current conditions Index ticked down to 28.7 from 29.7 in October, compared to expectations for an increase to 31.0.
The dollar’s gains were limited amid expectations that the Federal Reserve will maintain its stimulus program well into next year after comments by Federal Reserve Chairwoman nominee Janet Yellen last week were seen as reiterating the need for continued stimulus.
Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
The euro was lower against the yen, with EUR/JPY slipping 0.18% to 134.79.
Elsewhere, the dollar was lower against the yen, with USD/JPY down 0.14% to 99.84.
EUR/USD dipped 0.04% to 1.3499, down from Monday’s close of 1.3504 during European afternoon trade.
The pair was likely to find support at 1.3475 and resistance at 1.3546, the high of November 6.
Market sentiment was hit after the OECD said the global economy will grow by 2.7% this year and 3.6% in 2014, down from forecasts of 3.1% and 4% in May.
OECD trimmed its forecast for euro zone growth to 1% in 2014, from the May estimate of 1.1%. However, it upgraded its forecast for the currency bloc for 2013 from a contraction of 0.6% to a contraction of 0.4%.
It said "weakness" in the euro zone banking system was a "major drag" on growth and warned that there is an increasing risk of deflation in the currency bloc.
The euro shrugged off a report showing that the ZEW index of German economic sentiment rose to a four-year high this month.
The ZEW index of German economic sentiment rose to 54.6 in November from October’s reading of 52.8. Economists had expected the index improve to 54.0.
The current conditions Index ticked down to 28.7 from 29.7 in October, compared to expectations for an increase to 31.0.
The dollar’s gains were limited amid expectations that the Federal Reserve will maintain its stimulus program well into next year after comments by Federal Reserve Chairwoman nominee Janet Yellen last week were seen as reiterating the need for continued stimulus.
Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
The euro was lower against the yen, with EUR/JPY slipping 0.18% to 134.79.
Elsewhere, the dollar was lower against the yen, with USD/JPY down 0.14% to 99.84.