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Forex - EUR/USD edges lower as market sentiment weakens

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Forexpros - The euro edged lower against the U.S. dollar on Tuesday, as weak U.S. manufacturing data weighed on risk appetite even while a deal to raise the U.S. debt ceiling and avert a default looked set to pass the Senate.

EUR/USD hit 1.4224 during late Asian trade, the daily low; the pair subsequently consolidated at 1.4237, easing down 0.09%.

The pair was likely to find support at 1.4138, the low of July 20 and resistance at 1.4412, the high of July 29.

On Monday, the House of Representatives approved legislation to raise the U.S. debt limit by at least USD2.1 trillion and cut federal spending by as much as USD2.4 trillion. The measure was to go to the Senate for a final vote later in the day.

However, concerns that the deal to raise the U.S. debt ceiling would not be sufficient to prevent ratings agencies from cutting the U.S. sovereign debt rating continued to weigh.

Elsewhere, fears over the global economic recovery continued to linger after a report on Monday showed that the U.S. Institute for Supply Management's Manufacturing Index fell to its lowest level in two years in July.

The euro was also lower against the pound, with EUR/GBP slipping 0.10% to hit 0.8735.

Later in the day, the U.S. was to publish official data on personal consumption expenditures and personal spending.

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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.

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