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Forex - EUR/USD little changed as Italy, ECB concerns weigh

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Investing.com - The euro was little changed close to two-and-a-half-month lows against the dollar on Tuesday as concerns over political instability in Italy and caution ahead of the upcoming European Central Bank policy meeting weighed.

EUR/USD hit 1.3047 during late Asian trade, the session low; the pair subsequently consolidated at 1.3033, inching up 0.06%.

The pair was likely to find support at 1.2965, Friday's low and the pair's lowest since December 11 and resistance at 1.3100, Friday's high.

The euro remained under pressure amid concerns that Italy will be unable to pass structural reforms and austerity measures as the country edged closer to fresh elections after inconclusive elections last week.

Worries over the outlook for Italy, the euro zone's third largest economy, fuelled speculation over a possible rate cut by the ECB in the coming months.

Elsewhere, the euro edged higher against the pound, with EUR/GBP easing up 0.06% to 0.8624 and was lower against the yen, with EUR/JPY falling 0.35% to 121.34.

The euro zone was to release revised data on service sector activity and official data on retail sales later Tuesday.

In the U.S., the Institute of Supply Management was to release a report on service sector activity.

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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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