Investing.com - The euro continued to trade close to six-week lows against the dollar on Tuesday after data showed that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in August.
EUR/USD hit 1.3144 during U.S. morning trade, the lowest since July 22; the pair subsequently consolidated at 1.3156, shedding 0.28%.
The pair was likely to find support at 1.3133, the low of July 22 and resistance at 1.3196, the session high.
The Institute for Supply Management said its index of purchasing managers rose to 55.7 in August from a reading of 55.4 in July. Analysts had expected the ISM PMI to fall to 54.0 last month.
The upbeat data reinforced the view that the Federal Reserve could start to unwind its stimulus program at its upcoming policy meeting on September 17-18.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.
The data came one day after a series of reports from China, the U.K. and the euro zone pointed to a pick-up in global manufacturing, bolstering the outlook for a broad based global recovery.
The euro remained under pressure amid expectations that the European Central Bank would reiterate its pledge to keep rates on hold following its policy meeting on Thursday.
The euro was weaker against the pound, with EUR/GBP down 0.22% to 0.8468.
Sterling moved broadly higher earlier after showed that activity in the U.K. construction sector expanded at the fastest rate in six years in August.
The U.K. construction PMI rose to 59.1 from 57.0 in July. Economists had forecast a reading of 58.3.
Elsewhere, the euro was higher against the yen, with EUR/JPY climbing 0.16% to 131.23. The euro briefly fell as low as 130.66 against the yen earlier Tuesday after Russia’s news agency said a rocket launch was detected in the Mediterranean.
The yen gave up gains after Israel later said it carried out a joint missile test with the U.S. as tensions over Syria continued.
EUR/USD hit 1.3144 during U.S. morning trade, the lowest since July 22; the pair subsequently consolidated at 1.3156, shedding 0.28%.
The pair was likely to find support at 1.3133, the low of July 22 and resistance at 1.3196, the session high.
The Institute for Supply Management said its index of purchasing managers rose to 55.7 in August from a reading of 55.4 in July. Analysts had expected the ISM PMI to fall to 54.0 last month.
The upbeat data reinforced the view that the Federal Reserve could start to unwind its stimulus program at its upcoming policy meeting on September 17-18.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.
The data came one day after a series of reports from China, the U.K. and the euro zone pointed to a pick-up in global manufacturing, bolstering the outlook for a broad based global recovery.
The euro remained under pressure amid expectations that the European Central Bank would reiterate its pledge to keep rates on hold following its policy meeting on Thursday.
The euro was weaker against the pound, with EUR/GBP down 0.22% to 0.8468.
Sterling moved broadly higher earlier after showed that activity in the U.K. construction sector expanded at the fastest rate in six years in August.
The U.K. construction PMI rose to 59.1 from 57.0 in July. Economists had forecast a reading of 58.3.
Elsewhere, the euro was higher against the yen, with EUR/JPY climbing 0.16% to 131.23. The euro briefly fell as low as 130.66 against the yen earlier Tuesday after Russia’s news agency said a rocket launch was detected in the Mediterranean.
The yen gave up gains after Israel later said it carried out a joint missile test with the U.S. as tensions over Syria continued.