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Forex - EUR/USD hits session lows after German ZEW

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Investing.com -

Investing.com - The euro slid to session lows against the broadly stronger dollar on Tuesday after a report showed that the ZEW index for German economic sentiment ticked lower this month.

EUR/USD touched lows of 1.3525 and was last down 0.12% to 1.3536.

The pair is likely to find support at 1.3506, Monday's low and a two-month low and near-term resistance at 1.3567, Monday's high.

The ZEW Centre for Economic Research said its index of German economic sentiment ticked down to 61.7 this month from 62.0 in December. Analysts had expected an increase to 64.0.

However, the current conditions index rose to a 20-month high of 41.2 this month from 32.4 in December, beating expectations for an increase to 34.1.

The euro remained under pressure amid concerns that the subdued inflation outlook for the euro zone may prompt the European Central Bank to ease monetary policy in order to safeguard the fragile recovery in the region.

Demand for the dollar continued to be underpinned by expectations for a reduction to the Federal Reserve's quantitative easing program at the outcome of its next policy meeting on January 29 to USD65 billion from the current USD75 billion.

Elsewhere, the euro fell to one-year lows against the pound. EUR/GBP hit lows of 0.8226, the weakest since January 2013, and was last down 0.19% to 0.8234.

The common currency held gains against the yen, with EUR/JPY up 0.32% to 141.62.

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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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