The euro edged higher against the US dollar on Tuesday, as Federal Reserve Bank experts calmed down the widespread fears that the central bank will end its stimulus program.
EUR/USD hit a session high at 1.3145 at 6:38 GMT. Support was expected at June 24th low, 1.3058, while resistance was to be encountered at 1.3175.
The president of the Federal Reserve Bank of Minneapolis, Narayana Kocherlakota, said on Monday that the central bank will stick to the course of continuing its bond purchases, until US unemployment rate was to decline further. Additionally, Dallas Fed President Richard Fisher said that investors should not overreact to US central banks plans of decelerating asset purchases.
Meanwhile, US dollar was still underpinned, as fears arose, regarding financial stability in China. Chinese shares registered the largest drop on a daily basis on Monday in almost four years. The dollar index was trading at levels close to two-week highs, as investors tended to cut their possessions of high-yielding currencies and make transition to assets, denominated in US dollars.
The euro showed stability versus the British pound, as EUR/GBP ticked down by a mere 0.01% to 0.8498. EUR/JPY was on lower levels, down by 0.17% to 128.00.
The United States was expected to release official data, regarding Durable Goods Orders, Consumer Confidence and New Home Sales later on Tuesday.