The euro advanced to its highest level in six months against the US dollar during Tuesdays light trade, as uncertainty over the future of Fed’s stimulus program continued to persist.
EUR/USD hit a session high at 1.3452 at 13:42 GMT, also the pairs highest since February 14th, after which consolidation followed at 1.3434, soaring 0.75% for the day. Support was likely to be found at current session low, 1.3322, while resistance was to be seen in the zone around 1.3520.
The euro was strongly supported due to the broad decline in equities worldwide, which triggered demand for the relatively secure currencies. The common currency was continuously underpinned after the release of strong GDP data out of the Euro zone last week, stating that the region has exited the 18-month recessionary period.
Meanwhile, the greenback was put under selling pressure amid massive speculation that the Federal Reserve Bank may begin to taper its asset purchases as soon as September this year. Market players awaited the release of the minutes of Fed’s July meeting, scheduled on Wednesday, as it may provide clues on whether such action was inbound.
Elsewhere, the euro was gaining against the sterling, as EUR/GBP cross advanced 0.50% to trade at 0.8566 at 14:57 GMT. EUR/JPY pair was also on positive ground, up by 0.24% for the day to trade at 130.43 at 14:57 GMT.
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