Shutterstock photo
Markets

Forex - EUR/USD near 1-month lows after ZEW data disappoints

Shutterstock photo

Shutterstock photo

Investing.com -

Investing.com - The euro held steady against the U.S. dollar on Tuesday, hovering near one-month lows after data on economic sentiment in Germany and the entire euro zone came out below market expectations.

EUR/USD hit 1.3747 during European morning trade, the pair's lowest since May 9; the pair subsequently consolidated at 1.3749, easing 0.07%.

The pair was likely to find support at 1.3696, the low of April 7 and resistance at 1.3844, the high of May 9.

In a report, the ZEW Institute said its index of German economic sentiment fell to a 16-month low of 33.1 this month, from a reading of 43.2 in April, compared to expectations for a decline to 41.0.

The Zew Institute also said that its economic sentiment index for the entire euro zone ticked down to 55.2 in May, from a reading of 61.2 the previous month. Analysts had expected the index to rise to 63.5 this month.

Demand for the single currency also remained vulnerable after the European Central Bank indicated last week that it could begin to ease monetary policy as soon as its next meeting in June, to combat persistently low inflation in the euro zone.

The euro was little changed against the pound, with EUR/GBP inching up 0.01% to 0.8157.

Later in the day, the U.S. was to produce data on retail sales, as well as reports on import prices and business inventories.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com Stocks & Forex App for Android!

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.

Other Topics

ForEx