Forex - EUR/USD lower ahead of ECB meeting


Shutterstock photo - " The euro traded lower against the U.S. dollar during Tuesday's Asian session as traders await the start of the European Central Bank meeting later Tuesday.

In Asian trading Tuesday, EUR/USD fell 0.07% to 1.3506. The pair was likely to find support at 1.3325, the low from Sept. 17, and resistance at 1.3818, last Monday's high.

The common currency got a lift Monday after euro zone manufacturing purchasing managers' index ticked up to 51.3 in October from a final reading of 51.1 in September, unchanged from a preliminary estimate and in line with market forecasts, according to London-based Markit Economics.

Germany's manufacturing PMI rose to 51.7 last month from 51.5 in September as new orders and production levels rose. Analysts were expecting the figure to remain unchanged at 51.5.

A recent batch of concerning economic data out of the euro zone has some traders betting the ECB will lower interest rates in an effort to stimulate growth. Recent unemployment data for the region touched a record high.

On a related note, Spain, the euro zone's fourth-largest economy and home to one of the developed world's worst jobless rates, reports unemployment data later Tuesday.

Should the ECB cut the overnight deposit rate, the cost of holding the euro would rise, likely prompting a raft selling.

Elsewhere, EUR/GBP fell 0.17% to 0.8451 after data showed that the U.K. construction purchasing managers' index rose to 59.4 last month, the highest level since September 2007, from 58.9 in September. Analysts were expecting an unchanged reading.

EUR/JPY lost 0.33% to 132.86. offers an extensive set of professional tools for the financial markets.
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This article appears in: Investing Forex and Currencies
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