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Forex - EUR/USD trims losses after German ZEW data

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Investing.com - The euro trimmed losses against the dollar on Tuesday after data showed that the ZEW index of German economic sentiment ticked higher in March, but concerns over a controversial bailout deal for Cyprus continued to weigh.

EUR/USD pulled away from 1.2915, the session low to hit 1.2940 during European morning trade, 0.13% lower for the day.

The pair was likely to find support at 1.2882, Monday's low and a three-month low and resistance at 1.3031, the high of March 14.

The ZEW index of German economic sentiment ticked up to 48.5 in March from February's reading of 48.2. Analysts had expected the index to dip to 48.0 this month.

However, the ZEW index of euro zone economic sentiment declined to 33.4 in March from a reading of 42.4 in February, amid concerns over political uncertainty in Italy and fears over the rescue package for Cyprus.

Earlier Tuesday, Cyprus's government submitted a new deposit tax bill that would scrap the controversial tax on bank deposits for amounts below EUR20, 000.

The euro was lower against the pound and the yen, with EUR/GBP down 0.19% to 0.8560 and EUR/JPY edging down 0.07% to 123.28.

The U.S. was to release official data on building permits and housing starts later in the trading day.

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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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