Investing.com – The euro advanced to a ten-week high against the broadly weaker U.S. dollar on Tuesday, amid speculation that rising inflation in the euro zone will see the European Central Bank raise interest rates before the U.S. Federal Reserve does.
EUR/USD hit 1.3747 during European morning trade, the pair’s highest since November 22; the pair subsequently consolidated at 1.374, gaining 0.35%.
The pair was likely to find support at 1.3569, Monday’s low and short-term resistance at 1.3825, the high of November 10.
The euro’s gains came after preliminary data on Monday showed that consumer prices in the euro zone rose 2.4% year-on-year, holding above the European Central Bank's target of just below 2% for the second month.
Sentiment on the dollar was hit as political upheaval in Egypt sent oil prices higher, sparking fears that U.S. economic recovery could lose momentum. Earlier in the day, Brent crude oil futures topped USD100 a barrel for the first time since 2008.
Meanwhile, the euro was lower against the pound, with EUR/GBP dipping 0.07% to hit 0.8542.
Later in the day, the U.S. Institute of Supply Management was to publish data on manufacturing growth.
EUR/USD hit 1.3747 during European morning trade, the pair’s highest since November 22; the pair subsequently consolidated at 1.374, gaining 0.35%.
The pair was likely to find support at 1.3569, Monday’s low and short-term resistance at 1.3825, the high of November 10.
The euro’s gains came after preliminary data on Monday showed that consumer prices in the euro zone rose 2.4% year-on-year, holding above the European Central Bank's target of just below 2% for the second month.
Sentiment on the dollar was hit as political upheaval in Egypt sent oil prices higher, sparking fears that U.S. economic recovery could lose momentum. Earlier in the day, Brent crude oil futures topped USD100 a barrel for the first time since 2008.
Meanwhile, the euro was lower against the pound, with EUR/GBP dipping 0.07% to hit 0.8542.
Later in the day, the U.S. Institute of Supply Management was to publish data on manufacturing growth.