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Forex - EUR/USD steady after Japan fin min comments

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Investing.com - The euro was steady against the U.S. dollar on Tuesday after Japan's finance minister said Tokyo will purchase bonds from the European Stability Mechanism, the euro zone's permanent bailout fund.

EUR/USD hit 1.3140 during late Asian trade, the pair's highest since January 3; the pair subsequently consolidated at 1.3117, inching up 0.02%.

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

The euro found support after Japanese Finance Minister Taro Aso said his government would buy bonds issued by the ESM in order to help stabilize the financial situation in the bloc.

Overall market sentiment remained cautious amid uncertainty about continuing political wrangling in Washington over further U.S. budget cuts and raising the U.S. debt ceiling.

The euro was higher against the pound, with EUR/GBP rising 0.18% to 0.8153, but slipped lower against the yen, with EUR/JPY down 0.38% to 114.70.

Later Tuesday, the euro zone was to release official data on retail sales and the unemployment rate, while Germany was to produce official data on factory orders.

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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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