Forex Pros – The euro moved higher against the U.S. dollar on Tuesday, as risk sentiment improved but doubts remained over whether euro zone leaders would reach an agreement on measures to tackle the regions debt crisis.
EUR/USD hit 1.3547 during European late morning trade, the daily high; the pair subsequently consolidated at 1.3541, climbing 0.38%.
The pair was likely to find short-term support at 1.3427, Monday’s low and resistance at 1.362, last Thursday’s high.
On Monday, European finance ministers agreed that a permanent rescue mechanism to be set up from 2013 would total EUR500 billion, but ministers failed to reach an agreement on shoring up the existing rescue fund.
Earlier Tuesday, preliminary data showed that the euro zone’s economy expanded less-than-expected in the fourth quarter, while a separate report showed that the German economy expanded at the slowest pace in a year in the final quarter.
Also Tuesday, the ZEW Centre for Economic Research said German economic sentiment rose less-than-expected this month.
Meanwhile, the euro was lower against the pound, with EUR/GBP sliding 0.09% to hit 0.8401.
Later in the day, the U.S. was to publish government data on retail sales as well as a report on manufacturing activity in New York.
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