Forex - Euro up vs. dollar as euro zone inflation data eyed
Investing.com
Published Mar 01, 2011 02:28AM ET
EUR/USD hit 1.3831 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3809, easing up 0.03%.
The pair was likely to find support at 1.371, Monday’s low and short-term resistance at 1.3860, the high of February 2 and a three-month high.
The euro has found support recently amid expectations that the European Central Bank will hike interest rates this year and the euro zone inflation data could reinforce the view that the ECB will raise its benchmark interest rate sooner than the U.S. Federal Reserve.
Elsewhere, Fed Chairman Ben Bernanke was expected to maintain a cautious tone on the economy in his testimony before the Senate Banking Committee later in the day.
Data on Monday showed that U.S. consumer spending increased less-than-expected in January, rising 0.2%. The slowdown in spending came even while personal incomes recorded the largest gain since May 2009.
Meanwhile, the euro was slightly lower against the pound, with EUR/GBP dipping 0.03% to hit 0.8488.
Later Tuesday, Germany was to publish official data on employment change, while the euro zone was to publish preliminary data on consumer price inflation. In the U.S., the Institute for Supply Management was to publish a report on manufacturing activity.
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Written By: Investing.com
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