Investing.com - The euro slipped lower against the dollar in quiet trade on Tuesday, with trade volumes remaining thin as a result of holidays in Japan and China.
EUR/USD hit 1.3080 during late Asian trade, the session low; the pair subsequently consolidated at 1.3078, sliding 0.15%.
The pair was likely to find support at 1.3030, Monday’s low and resistance at 1.3119, the session high.
The euro remained supported after Italy’s new government was sworn in over the weekend, ending two months of political uncertainty, with Prime Minister Enrico Letta pledging to lower taxes in order to spur growth.
But sentiment on the single currency remained fragile ahead of an upcoming European Central Bank policy meeting later in the week, amid speculation over an interest rate cut after weak German economic data last week.
Recent comments by ECB officials have indicated that the bank would consider cutting rates if economic data continued to deteriorate.
Investors were also looking ahead to the outcome of the Federal Reserve’s policy meeting on Wednesday for further cues on the direction of monetary policy.
The euro was little changed against the pound and the yen, with EUR/GBP dipping 0.02% to 0.8449 and EUR/JPY sliding 0.11% to 127.92.
The euro zone was to release preliminary data on consumer inflation as well as official data on the unemployment rate later Tuesday. Spain was to release preliminary data on first quarter economic growth and Germany was to produce government data on the change in the number of people unemployed.
The U.S. was to release data on consumer confidence, a report on manufacturing activity in Chicago and private sector data on house price inflation.
EUR/USD hit 1.3080 during late Asian trade, the session low; the pair subsequently consolidated at 1.3078, sliding 0.15%.
The pair was likely to find support at 1.3030, Monday’s low and resistance at 1.3119, the session high.
The euro remained supported after Italy’s new government was sworn in over the weekend, ending two months of political uncertainty, with Prime Minister Enrico Letta pledging to lower taxes in order to spur growth.
But sentiment on the single currency remained fragile ahead of an upcoming European Central Bank policy meeting later in the week, amid speculation over an interest rate cut after weak German economic data last week.
Recent comments by ECB officials have indicated that the bank would consider cutting rates if economic data continued to deteriorate.
Investors were also looking ahead to the outcome of the Federal Reserve’s policy meeting on Wednesday for further cues on the direction of monetary policy.
The euro was little changed against the pound and the yen, with EUR/GBP dipping 0.02% to 0.8449 and EUR/JPY sliding 0.11% to 127.92.
The euro zone was to release preliminary data on consumer inflation as well as official data on the unemployment rate later Tuesday. Spain was to release preliminary data on first quarter economic growth and Germany was to produce government data on the change in the number of people unemployed.
The U.S. was to release data on consumer confidence, a report on manufacturing activity in Chicago and private sector data on house price inflation.