Investing.com - The euro was trading close to eight-day highs against the dollar on Tuesday as the risk of U.S. military intervention against Syria eased and upbeat Chinese economic data boosted investor confidence.
EUR/USD hit 1.3276 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3264, edging up 0.08%.
The pair was likely to find support at 1.3200 and near-term resistance at 1.3280, Monday’s high and an eight-day high.
Risk appetite was boosted after reports on industrial production and retail sales from China added to signs that the world’s second largest economy is recovering from a slowdown.
Data released on Tuesday showed that Chinese retail sales rose unexpectedly in August, while Chinese industrial production rose more than forecast last month.
Market sentiment was also bolstered after Syrian Foreign Minister Walid al-Moallem said his government agreed to a Russian proposal to place its chemical weapons under international control.
U.S. President Barack Obama has said he would put plans for a military strike against Syria on hold if the country agreed to relinquish control of its chemical weapons.
In the euro zone, data on Tuesday showed that the recession in Italy is deeper than had been previously thought.
The economy contracted by 0.3% in the second quarter, worse than the initial estimate of a 0.2% contraction, bringing the annualized rate of contraction to 2.1% from the initial estimate for a 2% contraction.
Meanwhile, Italian government borrowing costs rose above Spain's for the first time in 18 months on Tuesday, with Italian 10-year bond yields trading at 4.521% compared to 4.508% for Spain.
The euro was slightly lower against the pound, with EUR/GBP slipping 0.11% to 0.8436 and was sharply higher against the weaker yen, with EUR/JPY advancing 0.93% to 133.20.
EUR/USD hit 1.3276 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3264, edging up 0.08%.
The pair was likely to find support at 1.3200 and near-term resistance at 1.3280, Monday’s high and an eight-day high.
Risk appetite was boosted after reports on industrial production and retail sales from China added to signs that the world’s second largest economy is recovering from a slowdown.
Data released on Tuesday showed that Chinese retail sales rose unexpectedly in August, while Chinese industrial production rose more than forecast last month.
Market sentiment was also bolstered after Syrian Foreign Minister Walid al-Moallem said his government agreed to a Russian proposal to place its chemical weapons under international control.
U.S. President Barack Obama has said he would put plans for a military strike against Syria on hold if the country agreed to relinquish control of its chemical weapons.
In the euro zone, data on Tuesday showed that the recession in Italy is deeper than had been previously thought.
The economy contracted by 0.3% in the second quarter, worse than the initial estimate of a 0.2% contraction, bringing the annualized rate of contraction to 2.1% from the initial estimate for a 2% contraction.
Meanwhile, Italian government borrowing costs rose above Spain's for the first time in 18 months on Tuesday, with Italian 10-year bond yields trading at 4.521% compared to 4.508% for Spain.
The euro was slightly lower against the pound, with EUR/GBP slipping 0.11% to 0.8436 and was sharply higher against the weaker yen, with EUR/JPY advancing 0.93% to 133.20.