Investing.com - The euro was higher against the U.S. dollar on Tuesday, as broad concerns over the global economic recovery eased and Monday’s better-than-forecast U.S. retail sales data bolstered risk appetite.
EUR/USD hit 1.3001 during early European trade, the pair’s highest since October 8; the pair subsequently consolidated at 1.2994, gaining 0.36%.
The pair was likely to find support at 1.2889, Monday’s low and resistance at 1.3024, the high of October 8.
Investor confidence was boosted on Monday after official data showed that U.S. retail sales rose by a seasonally adjusted 1.1% in September, beating expectations for a 0.8% increase.
The data came after better-than-forecast Chinese trade data over the weekend eased concerns over a slowdown in the world’s second largest economy.
Demand for the single currency was also underpinned by hopes that Spain will formally request a bailout for its euro zone partners in the coming weeks and activate a bond buying program by the European Central Bank aimed at lowering borrowing costs in the peripheral euro zone.
Elsewhere in the euro zone, Greek government officials indicated Monday that an agreement with international creditors on deficit reductions is unlikely to be reached before Thursday’s European Union summit.
The euro was higher against the pound and the yen, with EUR/GBP up 0.24% to 0.8076 and EUR/JPY advancing 0.69% to 102.51.
Later in the day, the euro zone was to release official data on consumer price inflation, while the ZEW Institute was to publish data on German economic sentiment. In addition, Spain and Greece are scheduled to hold auctions of government debt.
The U.S. was to release government data on consumer price inflation and industrial production.
EUR/USD hit 1.3001 during early European trade, the pair’s highest since October 8; the pair subsequently consolidated at 1.2994, gaining 0.36%.
The pair was likely to find support at 1.2889, Monday’s low and resistance at 1.3024, the high of October 8.
Investor confidence was boosted on Monday after official data showed that U.S. retail sales rose by a seasonally adjusted 1.1% in September, beating expectations for a 0.8% increase.
The data came after better-than-forecast Chinese trade data over the weekend eased concerns over a slowdown in the world’s second largest economy.
Demand for the single currency was also underpinned by hopes that Spain will formally request a bailout for its euro zone partners in the coming weeks and activate a bond buying program by the European Central Bank aimed at lowering borrowing costs in the peripheral euro zone.
Elsewhere in the euro zone, Greek government officials indicated Monday that an agreement with international creditors on deficit reductions is unlikely to be reached before Thursday’s European Union summit.
The euro was higher against the pound and the yen, with EUR/GBP up 0.24% to 0.8076 and EUR/JPY advancing 0.69% to 102.51.
Later in the day, the euro zone was to release official data on consumer price inflation, while the ZEW Institute was to publish data on German economic sentiment. In addition, Spain and Greece are scheduled to hold auctions of government debt.
The U.S. was to release government data on consumer price inflation and industrial production.