Forexpros – The euro touched a one-week high against the U.S. dollar on Tuesday, buoyed by hopes that European leaders will take fresh action to stem the crisis roiling the euro zone.
EUR/USD hit 1.2542 during late Asian trade, the pair’s highest since May 29; the pair subsequently consolidated at 1.2509, gaining 0.09%.
The pair was likely to find support at 1.2385, Monday’s low and resistance at 1.2601, the high of May 25.
Market sentiment firmed up ahead of a teleconference of finance ministers from the Group of Seven industrialized nations later in the day, to discuss the situation in the euro area.
The euro was also supported by expectations for more monetary easing measures by the European Central Bank at its policy meeting on Wednesday, to help stabilize markets.
The euro edged higher against the pound, with EUR/GBP inching up 0.06% to hit 0.8128 and climbed against the yen, with EUR/JPY adding 0.27% to hit 98.17.
Later Tuesday, the euro zone was to produce official data on retail sales, while Germany was to publish official data on factory orders.
In the U.S., the Institute for Supply Management was to release a report on non-manufacturing activity.
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