Investing.com - The euro steadied against its major counterparts on Tuesday, consolidating after Monday’s steep losses as an unexpected improvement in German economic sentiment lent support, but fears over sovereign ratings downgrades continued to weigh.
During European late morning trade, the euro edged higher against the U.S. dollar, with EUR/USD inching up 0.07% to hit 1.3197.
The ZEW Centre for Economic Research said that its index of German economic sentiment rose for the first time in ten months in December, edging up to minus 53.8 from last month’s three-year low of minus 55.2.
Analysts had expected the index to decline to minus 55.8 in December.
However, the singe currency remained under pressure as the yield on Italian 10-year government bonds climbed above the critical 7% threshold, amid concerns over potential euro zone rating downgrades, after last week’s European Union summit failed to produce decisive steps to tackle the region’s debt crisis.
The euro was also slightly higher against the pound, with EUR/GBP easing up 0.08% to hit 0.8468.
In the U.K., official data showed that consumer prices rose 0.2% in November, taking the annual inflation rate to 4.8%, in line with expectations.
Meanwhile, Bank of England Chief Economist Spencer Dale said earlier that inflation was likely to fall to just above 3% by the end of the first quarter, adding that the pace of inflation after that would determine the course of monetary policy.
But the shared currency was weaker against the yen and the Swiss franc, with EUR/JPY slipping 0.11% to hit 102.7 and EUR/CHF dipping 0.08% to hit 1.2349.
In Japan, Finance Minister Jun Azumi said earlier that European leaders should do more to resolve the debt crisis, before asking for funds from the International Monetary Fund.
Elsewhere, the euro was mixed to broadly lower against the Canadian, Australian and New Zealand dollars, with EUR/CAD inching up 0.02% to hit 1.3548, EUR/AUD shedding 0.32% to hit 1.305 and EUR/NZD sliding 0.05% to hit 1.7273.
The National Australia Bank said earlier that its index of business confidence remained unchanged in November, supported by mining as well as the retail and services sectors.
Later Tuesday, the Federal Reserve was to announce its federal funds rate, while the U.S. was also to release official data on retail sales.
During European late morning trade, the euro edged higher against the U.S. dollar, with EUR/USD inching up 0.07% to hit 1.3197.
The ZEW Centre for Economic Research said that its index of German economic sentiment rose for the first time in ten months in December, edging up to minus 53.8 from last month’s three-year low of minus 55.2.
Analysts had expected the index to decline to minus 55.8 in December.
However, the singe currency remained under pressure as the yield on Italian 10-year government bonds climbed above the critical 7% threshold, amid concerns over potential euro zone rating downgrades, after last week’s European Union summit failed to produce decisive steps to tackle the region’s debt crisis.
The euro was also slightly higher against the pound, with EUR/GBP easing up 0.08% to hit 0.8468.
In the U.K., official data showed that consumer prices rose 0.2% in November, taking the annual inflation rate to 4.8%, in line with expectations.
Meanwhile, Bank of England Chief Economist Spencer Dale said earlier that inflation was likely to fall to just above 3% by the end of the first quarter, adding that the pace of inflation after that would determine the course of monetary policy.
But the shared currency was weaker against the yen and the Swiss franc, with EUR/JPY slipping 0.11% to hit 102.7 and EUR/CHF dipping 0.08% to hit 1.2349.
In Japan, Finance Minister Jun Azumi said earlier that European leaders should do more to resolve the debt crisis, before asking for funds from the International Monetary Fund.
Elsewhere, the euro was mixed to broadly lower against the Canadian, Australian and New Zealand dollars, with EUR/CAD inching up 0.02% to hit 1.3548, EUR/AUD shedding 0.32% to hit 1.305 and EUR/NZD sliding 0.05% to hit 1.7273.
The National Australia Bank said earlier that its index of business confidence remained unchanged in November, supported by mining as well as the retail and services sectors.
Later Tuesday, the Federal Reserve was to announce its federal funds rate, while the U.S. was also to release official data on retail sales.