Investing.com - The euro rose to session highs against the dollar on Tuesday as doubts over how long the Federal Reserve will maintain its asset purchase program in place weighed on the dollar.
EUR/USD advanced 0.20% to 1.3532 from Monday’s close of 1.3504 during U.S. morning trade.
The pair was likely to find support at 1.3475 and resistance at 1.3546, the high of November 6.
The dollar remained under pressure on the view that the Fed will continue its USD85 billion-a-month asset purchase program well into the beginning of next year.
But this view was tempered after Fed Bank of New York President William Dudley said Monday he was growing more hopeful that the economy is improving.
Investors were looking 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 remained supported after data released on Tuesday showed 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.
Elsewhere, the Organization for Economic Co-operation and Development cut global growth forecasts on Tuesday, warning that the outlook for emerging markets is deteriorating.
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.
The U.S. economy would grow 2.9% in 2014 it said, but warned that the “potentially catastrophic crisis" over the debt ceiling had undermined investor confidence.
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 was also higher against the yen, with EUR/JPY rising 0.28% to 135.43.
Meanwhile, the dollar edged higher against the yen, with USD/JPY inching up 0.09% to 100.07, holding below the two-month highs of 100.42 struck on Friday.
EUR/USD advanced 0.20% to 1.3532 from Monday’s close of 1.3504 during U.S. morning trade.
The pair was likely to find support at 1.3475 and resistance at 1.3546, the high of November 6.
The dollar remained under pressure on the view that the Fed will continue its USD85 billion-a-month asset purchase program well into the beginning of next year.
But this view was tempered after Fed Bank of New York President William Dudley said Monday he was growing more hopeful that the economy is improving.
Investors were looking 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 remained supported after data released on Tuesday showed 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.
Elsewhere, the Organization for Economic Co-operation and Development cut global growth forecasts on Tuesday, warning that the outlook for emerging markets is deteriorating.
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.
The U.S. economy would grow 2.9% in 2014 it said, but warned that the “potentially catastrophic crisis" over the debt ceiling had undermined investor confidence.
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 was also higher against the yen, with EUR/JPY rising 0.28% to 135.43.
Meanwhile, the dollar edged higher against the yen, with USD/JPY inching up 0.09% to 100.07, holding below the two-month highs of 100.42 struck on Friday.