Investing.com - The euro remained slightly lower against the dollar on Tuesday as concerns over the future direction of U.S. monetary policy and the global economic outlook weighed on investor confidence.
EUR/USD hit 1.3464 during U.S. morning trade, the lowest since September 18; the pair subsequently consolidated at 1.3479, slipping 0.11%.
The pair was likely to find support at 1.3400 and resistance at 1.3518, the session high.
Concerns over the outlook for the U.S. recovery mounted after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.
Speaking Monday, Dudley said the pace of the U.S. economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
The dollar was little changed after data released on Tuesday showed that the Conference Board’s index of U.S. consumer confidence fell to 79.7 on September from 81.8 in August. Economists had forecast a decline to 79.9.
The euro slipped against the dollar earlier in the session after a report showed that German business confidence improved in September, but to a lower than expected level.
The German Ifo business climate index ticked up to 107.7 from 107.6 in August, the highest level since March 2012 but still below expectations for a reading of 108.2.
The single currency remained under pressure after European Central Bank President Mario Draghi said Monday the bank is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.
Elsewhere, the euro was higher against the pound, with EUR/GBP rising 0.28% to 0.8433 and was lower against the yen, with EUR/JPY down 0.34% to 132.93.
EUR/USD hit 1.3464 during U.S. morning trade, the lowest since September 18; the pair subsequently consolidated at 1.3479, slipping 0.11%.
The pair was likely to find support at 1.3400 and resistance at 1.3518, the session high.
Concerns over the outlook for the U.S. recovery mounted after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.
Speaking Monday, Dudley said the pace of the U.S. economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
The dollar was little changed after data released on Tuesday showed that the Conference Board’s index of U.S. consumer confidence fell to 79.7 on September from 81.8 in August. Economists had forecast a decline to 79.9.
The euro slipped against the dollar earlier in the session after a report showed that German business confidence improved in September, but to a lower than expected level.
The German Ifo business climate index ticked up to 107.7 from 107.6 in August, the highest level since March 2012 but still below expectations for a reading of 108.2.
The single currency remained under pressure after European Central Bank President Mario Draghi said Monday the bank is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.
Elsewhere, the euro was higher against the pound, with EUR/GBP rising 0.28% to 0.8433 and was lower against the yen, with EUR/JPY down 0.34% to 132.93.