Investing.com - The euro firmed against the dollar on Tuesday as investors digested conflicting reports on whether the European Central Bank will cap yields in government bond auctions to lower borrowing costs in countries such as Spain.
In Asian trading on Tuesday, EUR/USD was trading up 0.06% at 1.2352, up from a low of 1.2350 and off from a high of 1.2354.
The pair was likely to find support at 1.2317, the low from Aug. 14, and resistance at 1.2382, the high from Aug. 17.
Der Spiegel reported over the weekend that the European Central Bank may decide to cap yields in eurozone sovereign debt markets at its September policy meeting.
The European Central Bank would carry out such a policy via buying sovereign bonds in the open market, though bank officials rejected the news report, which sent the euro falling earlier before it later regained strength.
European Central Bank officials have said they would consider intervening in bond markets but only if governments meet certain fiscal reforms.
Elsewhere, Luxembourg Prime Minister Jean-Claude Juncker is due to visit Athens later this week and markets were optimistic European policymakers adjust austerity measures attached to bailout payments.
Greece has requested a two-year extension to make fiscal adjustments.
The euro, meanwhile, was up against the pound and down against the yen, with EUR/GBP up 0.07% at 0.7862, and EUR/JPY trading down 0.05% at 98.00.
Investors are looking ahead to Wednesday, when the Federal Reserve releases the minutes of its most recent monetary policy meeting.
Federal Reserve officials have said they cannot rule out stimulating the economy with monetary easing tools though a string of upbeat economic indicators has sparked talk the Fed may stand down, which would be bullish for the dollar.
In Asian trading on Tuesday, EUR/USD was trading up 0.06% at 1.2352, up from a low of 1.2350 and off from a high of 1.2354.
The pair was likely to find support at 1.2317, the low from Aug. 14, and resistance at 1.2382, the high from Aug. 17.
Der Spiegel reported over the weekend that the European Central Bank may decide to cap yields in eurozone sovereign debt markets at its September policy meeting.
The European Central Bank would carry out such a policy via buying sovereign bonds in the open market, though bank officials rejected the news report, which sent the euro falling earlier before it later regained strength.
European Central Bank officials have said they would consider intervening in bond markets but only if governments meet certain fiscal reforms.
Elsewhere, Luxembourg Prime Minister Jean-Claude Juncker is due to visit Athens later this week and markets were optimistic European policymakers adjust austerity measures attached to bailout payments.
Greece has requested a two-year extension to make fiscal adjustments.
The euro, meanwhile, was up against the pound and down against the yen, with EUR/GBP up 0.07% at 0.7862, and EUR/JPY trading down 0.05% at 98.00.
Investors are looking ahead to Wednesday, when the Federal Reserve releases the minutes of its most recent monetary policy meeting.
Federal Reserve officials have said they cannot rule out stimulating the economy with monetary easing tools though a string of upbeat economic indicators has sparked talk the Fed may stand down, which would be bullish for the dollar.