Investing.com - The euro traded largely lower against the U.S.
dollar on Tuesday as investors avoided the single currency due to
Italian political concerns and went long on stocks in wake of
surprisingly strong U.S. service-sector data.
The U.S. Dow Jones Industrial Average touched a record high in
earlier intraday trading.
In U.S. trading on Tuesday, EUR/USD was down 0.07% at 1.3017, up
from a session low of 1.3011 and off from a high of 1.3076.
The pair was likely to find support at 1.2982, Monday's low, and
resistance at 1.3162, Thursday's high.
In the U.S. earlier, the Institute for Supply Management said its
February non-manufacturing purchasing managers' index rose to 56.0
from 55.2 in January, beating analysts' calls for the index to fall
to 55.0 last month.
The news sparked a rally in U.S. stock markets, which saw record
Elsewhere in Europe, Germany's services PMI rose to 54.7 in
February, beating market calls for a 54.1 reading, according to
A eurozone services PMI hit 47.9 compared with consensus forecasts
for a 47.3 reading.
Elsewhere, official data released earlier revealed that eurozone
retail sales rose by 1.2% in January, well above expectations for a
U.S. and European equities proved to be the asset class of choice
during Tuesday's risk-on trading session.
Italy may go to the polls anew following inconclusive results in
recent elections, and fears continued to build on Tuesday that
electoral uncertainties may prevent the country from pushing
through economic reforms, which tarnished the single currency's
Talk of a possible rate cut by the European Central Bank in the
coming months weakened the currency as well.
The euro, meanwhile, was flat to lower against the pound and down
against the yen, with EUR/GBP trading down 0.03% at 0.8616, and
EUR/JPY trading down 0.07% at 121.67.
On Wednesday, the eurozone is to release revised data on its fourth
quarter gross domestic product rates.
The U.S. is to publish data on ADP nonfarm payrolls, a precursor to
official data on nonfarm payrolls to be released on Friday. The
U.S. is also to release official data on factory orders and crude
offers an extensive set of professional tools for the Forex,
Commodities, Futures and the Stock Market including real-time data
streaming, a comprehensive economic calendar, as well as financial
news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @