Investing.com - The euro edged lower against the dollar on Tuesday in a session void of a major economic indicators that saw investors sidestep the single currency on expectations the European Central Bank will loosen policy at its June meeting.
In U.S. trading, EUR/USD was down 0.12% at 1.3693, up from a session low of 1.3679 and off a high of 1.3714.
The pair was likely to find support at 1.3649, Thursday''s low, and resistance at 1.3734, Monday''s high.
The European Central Bank left interest rates unchanged at 0.25% at its last meeting, though ECB President Mario Draghi said the governing council felt comfortable loosening policy at its next meeting, with markets bracing for rate cuts or additional easing measures.
Also weakening the single currency were uncertainties surrounding European Parliament elections due to take place later this week and what changes to austerity policies they could bring.
Elsewhere in Europe, Germany’s producer price index fell unexpectedly in April, official data showed on Tuesday.
In a report, Destatis said that Germany''s producer price index fell 0.1% from March and 0.9% on year, both figures missing market expectations.
Analysts had expected the German PPI to rise 0.1% from March and contract 0.8% on year.
Meanwhile in the U.S., investors were turning their attention to the minutes from the Fed’s latest monetary policy meeting on Wednesday, as they awaited insight on the central bank''s view of the economy.
Recent U.S. economic reports indicating that the recovery remains uneven have weighed on U.S. Treasury yields, pressuring the dollar.
The euro was down against the pound, with EUR/GBP down 0.29% to 0.8129, and down against the yen, with EUR/JPY down 0.30% at 138.73.
Upbeat consumer inflation data out of the U.K. bolstered the pound.
The Office for National Statistics reported earlier that the U.K. consumer price index in April rose 1.8% on year and up from 0.4% in March, beating expectations for 1.7% and 0.3%, respectively.
The rise in inflation was due in part to higher transport costs, the ONS said, as airlines pushed up ticket prices in time for the Easter holidays.
The ONS also said that U.K. house prices rose by 8.0% in March from a year earlier, slowing from 9.2% in February. House prices in London jumped 17% in the last 12 month, it added.
On Wednesday, the euro zone is to release data on the current account.
In the U.S., Fed Chair Janet Yellen is to speak at an event in New York and later, the Fed is to publish the minutes of its latest meeting.
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