Investing.com – The euro erased losses against the U.S. dollar on Tuesday, rising to a two-day high after preliminary data showing inflation in the euro zone accelerated at its fastest pace in two years.
EUR/USD hit 1.3417 during European morning trade, the pair’s highest since December 31; the pair subsequently consolidated at 1.3397, gaining 0.28%.
The pair was likely to find support at 1.3249, Monday’s low and short-term resistance at 1.3423, the high of December 31.
In a preliminary report, Eurostat said consumer price inflation was estimated to rise by a seasonally adjusted 2.2% in December, after holding steady at 1.9% in November.
Analysts had expected euro zone CPI to rise by 2.0% in December. Final figures are scheduled to be released on January 14.
The report showed that German and Spanish consumer prices both outpaced forecasts in December as energy costs rose.
Meanwhile, the euro was down against the pound, with EUR/GBP shedding 0.63% to hit 0.8569.
Later in the day, the U.S. Federal Reserve was to publish the minutes of its December monetary policy meeting. The country was also to publish official data on factory orders.
EUR/USD hit 1.3417 during European morning trade, the pair’s highest since December 31; the pair subsequently consolidated at 1.3397, gaining 0.28%.
The pair was likely to find support at 1.3249, Monday’s low and short-term resistance at 1.3423, the high of December 31.
In a preliminary report, Eurostat said consumer price inflation was estimated to rise by a seasonally adjusted 2.2% in December, after holding steady at 1.9% in November.
Analysts had expected euro zone CPI to rise by 2.0% in December. Final figures are scheduled to be released on January 14.
The report showed that German and Spanish consumer prices both outpaced forecasts in December as energy costs rose.
Meanwhile, the euro was down against the pound, with EUR/GBP shedding 0.63% to hit 0.8569.
Later in the day, the U.S. Federal Reserve was to publish the minutes of its December monetary policy meeting. The country was also to publish official data on factory orders.