Investing.com - The euro was steady against the dollar on Tuesday, holding above eight month lows, as investors looked ahead to the outcome of the European Central Bank’s monetary policy meeting later in the week.
EUR/USD was almost unchanged at 1.3421, staying supported above the eight month trough of 1.3366 reached last Wednesday.
The pair was likely to find support at 1.3366 and resistance at around the 1.3450 level.
Investors remained cautious ahead of the conclusion of the ECB’s monthly monetary policy review on Thursday, amid concerns over the diverging monetary policy stance between the central bank and its major peers.
Data late last week showing that the annual rate of inflation in the euro area slowed to 0.4% in July from 0.5% in June added to pressure on the ECB to implement further easing measures to avert the risk of deflation in the region.
The dollar remained supported below recent highs after the latest U.S. employment report on Friday showing that jobs growth slowed slightly in July prompted investors to curtail expectations on the timing of a possible rate hike by the Federal Reserve.
The U.S. economy added 209,000 jobs in July, below forecasts for 233,000, while the unemployment rate ticked higher and wage growth was flat, pointing to underlying slack in the economy.
The euro dipped against the yen, with EUR/JPY easing 0.07% to 137.55.
Elsewhere Tuesday, the dollar edged lower against the yen, with USD/JPY dipping 0.06% to 102.50, off the almost four month highs of 103.07 set last Wednesday.