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Forex - Euro broadly lower ahead of GDP, inflation data

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Investing.com -

Investing.com - The euro was weaker against the dollar and the yen on Tuesday amid concerns that weak readings on euro zone economic growth and inflation later in the week would prompt the European Central Bank to step up measures to shore up the recovery in the region.

EUR/USD was down 0.12% to 1.3366, not far from the nine month lows of 1.3332 struck last Wednesday.

The pair was likely to find support at the 1.3300 level and resistance at 1.3400.

Investors were looking ahead to Thursday's preliminary data on second quarter growth in the euro zone, as well as in Germany and France, amid expectations for a weak reading.

The euro zone was also to publish revised data on consumer prices for July on Thursday, with the annual rate of inflation expected to remain unchanged at 0.4%, well below the ECB's 2% target.

The ECB cut rates to record lows in June in a bid to stave off growing deflationary pressures in the region and concerns over the diverging monetary policy stance between it and its major peers have continued to pressure the single currency lower.

Meanwhile, investors were continuing to monitor geopolitical risk stemming from Ukraine and the Middle East.

Germany was to release its closely watched ZEW index of economic sentiment later Tuesday, as concerns over the impact of sanctions on Russia continued to weigh on the outlook for the bloc's largest economy. Germany is Russia's largest trading partner in Europe.

EUR/JPY was little changed at 136.69, holding above the eight-and-a-half month lows of 135.71 reached on Friday.

Elsewhere, the euro was steady against the pound, with EUR/GBP at 0.7971.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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