Forex - EUR/USD edges higher but gains limited

Forexpros - The euro pushed higher against the U.S. dollar on Tuesday, but remained vulnerable as ongoing concerns over the debt crisis in the euro zone meant gains were limited.

EUR/USD hit 1.3008 during late Asian trade, the pair’s highest since December 28; the pair subsequently consolidated at 1.2993, gaining 0.46%.

The pair was likely to find support at 1.2903, the low of December 30 and resistance at 1.3079, the high of December 28.

The euro found support as gains in Asian stock markets boosted risk appetite after data on Sunday showed that Chinese manufacturing activity expanded in December after contracting the previous month.

But the euro remained under pressure amid fears over the risk of sovereign debt downgrades across the shared currency zone, as investors looked ahead to bond auctions by Germany and France later in the week to gauge borrowing conditions in the region.

The euro was also higher against the pound, with EUR/GBP rising 0.16% to hit 0.8351.

Later Tuesday, Germany was to release official data on employment. Meanwhile, the U.S. Institute of Supply Management was to publish a report on manufacturing activity and the Federal Reserve was to publish the minutes of its December policy meeting.