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Forex - EUR/USD little changed after downbeat EZ data

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Investing.com - The euro remained steady against the U.S. dollar on Tuesday following downbeat data out of the euro zone as comments by Japan's finance minister earlier in the session continued to support the single currency.

EUR/USD hit 1.3103 during European morning trade, the session low; the pair subsequently consolidated at 1.3119, inching up 0.03%.

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

German factory orders fell 1.8% in November, compared to expectations for a 1.4% decline as overseas demand declined.

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.

Demand for the euro continued to be underpinned after Japan's finance minister said earlier that Tokyo will buy bonds issued by the European Stability Mechanism, the euro zone's permanent bailout fund.

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 higher against the pound, with EUR/GBP up 0.21% to 0.8155 but was lower against the yen, with EUR/JPY down 0.34% to 114.74.

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.

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