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Forex - Euro slips lower vs. dollar, still supported

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Investing.com - The euro slipped lower against the U.S. dollar on Tuesday, but losses looked likely to remain limited after Japan's finance minister said Tokyo will purchase bonds from the European Stability Mechanism, the euro zone's permanent bailout fund.

EUR/USD hit 1.3083 during European afternoon trade, the session low; the pair subsequently consolidated at 1.30886, slipping 0.24%.

The pair was likely to find support at 1.3016, Monday's low and resistance at 1.3189, the high of January 3.

The euro weakened after official data showed that German factory orders fell 1.8% in November, compared to expectations for a 1.4% decline as overseas demand dropped.

Meanwhile, Eurostat said the unemployment rate in the euro zone hit a new record high of 11.8% in November, up from 11.7% in October, underlining concerns over the outlook for growth in the region.

A separate report showed that euro zone retail sales increased 0.1% in November, compared to expectations for a 0.3% rise.

But the euro remained supported after Japanese Finance Minister Taro Aso said that his government would buy bonds issued by the ESM fund, in order to help stabilize the financial situation in the bloc.

The ESM was scheduled to make its first issuance of securities later in the trading day, following its launch in October 2012.

The euro was almost unchanged against the pound, with EUR/GBP inching up 0.08% to 0.8145 and was lower against the yen, with EUR/JPY down 0.51% to 114.56.

Later in the day, the U.S. was to release private sector data on economic optimism, as well as official data on consumer credit.

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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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