The euro was trading on lower levels against the US dollar on Tuesday, after a report showed that French manufacturing production unexpectedly contracted and as concerns over a possible military strike against Syria subsided.
EUR/USD hit a session low at 1.3239 at 9:17 GMT, after which consolidation followed at 1.3242, falling 0.10% for the day. Support was likely to be found at 1.3215, while resistance was to be encountered at September 9th high, 1.3280.
Earlier today it became clear that French manufacturing production registered a sharp decline in July, falling 0.7% on a monthly basis, after another 0.4% drop in June. Experts expectations of a 0.7% gain were confounded. On annual basis, manufacturing output fell 2.5% in July and 0.4% in June, while preliminary estimates pointed a drop by 0.5%.
Meanwhile, market sentiment improved after US President Barack Obamas campaign of a military intervention in Syria took an unexpected turn, as his administration granted Syrian President Assad a potential exit from the current situation. US Secretary of State John Kerry said that Syrian regime could avoid a strike on the country, if it was to give up all of its chemical weapons to international supervision. Russian Foreign Minister Lavrov supported the idea in a statement yesterday. President Obama said this unexpected turn could be a potentially positive development of the situation, as congressional debates on the matter were put on hold. Yesterday the US President participated in a series of TV interviews during prime-time to give explanation to his position before his official announcement on Tuesday.
Elsewhere, the euro was losing ground against the sterling, as EUR/GBP cross decreased by 0.21% to trade at 0.8430 at 9:27 GMT. EUR/JPY pair, on the other hand, added 0.31% on a daily basis to trade at 132.43 at 9:27 GMT.
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