Investing.com - The euro slid lower against the dollar on Tuesday as ongoing uncertainty over whether the Federal Reserve will start to taper stimulus this month weighed on investor sentiment.
EUR/USD touched session lows of 1.3732 and was last down 0.18% to 1.3735, off highs of 1.3781.
The pair was likely to find support at 1.3708, Friday’s low and resistance at 1.3800.
Market participants remained cautious ahead of the outcome of the Fed’s two-day policy meeting on Wednesday, with some investors expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
The dollar showed little reaction after the Department of Labor said U.S. consumer prices were flat in November after falling 0.1% in October.
The annual rate of inflation rose 1.2% in November, undershooting expectations for an increase of 1.3%, but was up from a four year low of 1.0% in October.
The euro shrugged off a report showing that the ZEW index of German economic sentiment rose to 62.0 in December from November’s reading of 54.6. It was the highest level since April 2006. Economists had expected the index to tick up to 55.0 this month.
The data came one day after a report showed that manufacturing activity in Germany rose to a 30 month high in November, bolstering the outlook for the recovery in the euro zone.
The euro was also weaker against the yen, with EUR/JPY sliding 0.28% to 141.34, down from session highs of 141.96.
Elsewhere, the dollar was slightly lower against the yen, with USD/JPY edging down 0.10% to 102.91.
EUR/USD touched session lows of 1.3732 and was last down 0.18% to 1.3735, off highs of 1.3781.
The pair was likely to find support at 1.3708, Friday’s low and resistance at 1.3800.
Market participants remained cautious ahead of the outcome of the Fed’s two-day policy meeting on Wednesday, with some investors expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
The dollar showed little reaction after the Department of Labor said U.S. consumer prices were flat in November after falling 0.1% in October.
The annual rate of inflation rose 1.2% in November, undershooting expectations for an increase of 1.3%, but was up from a four year low of 1.0% in October.
The euro shrugged off a report showing that the ZEW index of German economic sentiment rose to 62.0 in December from November’s reading of 54.6. It was the highest level since April 2006. Economists had expected the index to tick up to 55.0 this month.
The data came one day after a report showed that manufacturing activity in Germany rose to a 30 month high in November, bolstering the outlook for the recovery in the euro zone.
The euro was also weaker against the yen, with EUR/JPY sliding 0.28% to 141.34, down from session highs of 141.96.
Elsewhere, the dollar was slightly lower against the yen, with USD/JPY edging down 0.10% to 102.91.