Investing.com - The euro pulled back from seven-month highs against the dollar on Tuesday but the single currency remained supported as the first partial U.S. government shutdown since 1995 weighed on the dollar.
EUR/USD pulled back from 1.3587, the highest level since early February, to hit 1.3544 during European afternoon trade, still up 0.14% for the day.
The pair was likely to find support at 1.3476, Monday’s low and resistance at 1.3658, the high of February 4.
The dollar came under pressure amid expectations that the first partial U.S. government shutdown for 17 years would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.
In the euro zone, data released on Tuesday showed that the final reading of the bloc’s manufacturing purchasing managers index came in at 51.1 in September, unchanged from the preliminary estimate, but below August’s 26-month high of 51.4.
Meanwhile, data showed that the number of unemployed people in Germany rose for the second consecutive month in September, while the country’s jobless rate rose to 6.9% from 6.8% in August.
Separately, Eurostat said the total euro zone unemployment rate was 12.0% last month, while August’s rate was revised down to 12% from 12.1%.
The euro was lower against the pound and the yen, with EUR/GBP slipping 0.14% to 0.8343 and EUR/JPY down 0.31% to 132.42.
In the U.K., a report on Tuesday showed that manufacturing activity slowed slightly in September, but remained close to August’s two-and-a-half year highs.
Markit said that its U.K. manufacturing PMI fell to 56.7 in September from a downwardly revised 57.1 in August. Analysts had expected the index to tick up to 57.3.
The Institute of Supply Management was to produce a report on U.S. manufacturing activity later in the trading day.
EUR/USD pulled back from 1.3587, the highest level since early February, to hit 1.3544 during European afternoon trade, still up 0.14% for the day.
The pair was likely to find support at 1.3476, Monday’s low and resistance at 1.3658, the high of February 4.
The dollar came under pressure amid expectations that the first partial U.S. government shutdown for 17 years would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget.
In the euro zone, data released on Tuesday showed that the final reading of the bloc’s manufacturing purchasing managers index came in at 51.1 in September, unchanged from the preliminary estimate, but below August’s 26-month high of 51.4.
Meanwhile, data showed that the number of unemployed people in Germany rose for the second consecutive month in September, while the country’s jobless rate rose to 6.9% from 6.8% in August.
Separately, Eurostat said the total euro zone unemployment rate was 12.0% last month, while August’s rate was revised down to 12% from 12.1%.
The euro was lower against the pound and the yen, with EUR/GBP slipping 0.14% to 0.8343 and EUR/JPY down 0.31% to 132.42.
In the U.K., a report on Tuesday showed that manufacturing activity slowed slightly in September, but remained close to August’s two-and-a-half year highs.
Markit said that its U.K. manufacturing PMI fell to 56.7 in September from a downwardly revised 57.1 in August. Analysts had expected the index to tick up to 57.3.
The Institute of Supply Management was to produce a report on U.S. manufacturing activity later in the trading day.