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Forex - EUR/USD almost unchanged near 2-year lows

Published 12/23/2014, 02:29 AM
Euro holds steady near 2-year low vs. stronger dollar
EUR/USD
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EUR/GBP
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Investing.com - The euro was almost unchanged against the U.S. dollar on Tuesday, hovering close to a two-year low as demand for the greenback remained broadly supported in pre-Christmas trade.

Trading volumes were expected to remain light this week with many investors away for the Christmas holiday and ahead of the New Year's holiday.

EUR/USD hit 1.2221 during late Asian trade, the session low; the pair subsequently consolidated at 1.2236.

The pair was likely to find support at 1.2132 and resistance at 1.2305 the high of December 19.

The dollar remained broadly supported after the Federal Reserve signaled last week that it was on track to raise interest rates next year but said it was taking a patient stance.

The central bank also acknowledged the improvement in the U.S. labor market and noted that the economy is making progress toward its goals in inflation and employment.

The greenback showed little reaction to industry data released on Monday showing that U.S. existing home sales dropped by 6.1% in November to 4.93 million units from a revised total of 5.25 million the previous month.

In the euro zone, Eurostat reported on Monday that its index of consumer confidence for the single currency bloc improved to minus 10.9 this month from minus 11.5 in November, whose figure was revised from a previously estimated minus 11.6.

Analysts had expected the index to improve to minus 11.0 in December.

The euro was also steady against the pound, with EUR/GBP at 0.7849.

Later in the day, France was to publish report on consumer spending. The U.S. was to release final third-quarter GDP data, as well as on core durable goods orders and new home sales.

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