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Forex - Euro remains higher vs. dollar

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Investing.com - The euro remained higher against the dollar on Tuesday, as speculation over whether the Federal Reserve will begin to unwind its easing program continued.

EUR/USD hit 1.3299 during European afternoon trade, the pair's highest since June 6; the pair subsequently consolidated at 1.3272, rising 0.12%.

The pair was likely to find support at 1.3176, Monday's low and resistance at 1.3305, the high of June 6 and a three month high.

Speculation that the U.S. central bank will begin to taper its asset purchase program continued following Friday's upbeat jobs data and after ratings agency Standard & Poor's revised its long-term outlook on the U.S. credit rating to stable from negative on Monday, citing an improving economic outlook.

The euro was sharply lower against the stronger yen, with EUR/JPY dropping 1.76% to 128.58 after the Bank of Japan held back from implementing measures to ease market volatility following its latest policy setting meeting.

The yen strengthened against the dollar and the euro following sharp falls in Japanese equities overnight after the BoJ disappointed market expectations for measures to ease volatility in the government bond market.

The BoJ left monetary policy unchanged and said the economy was picking up, one day after official data showed that Japan's economy expanded by an annualized 4.1% in the first quarter, up from a preliminary reading of 3.5%.

Elsewhere, the single currency was higher against the pound, with EUR/GBP up 0.35% to 0.8539.

In the U.K., official data on Tuesday showed that manufacturing production fell by a smaller than forecast 0.2% in April, and industrial production unexpectedly rose 0.1%.

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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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