Investing.com - The euro held steady against the U.S. dollar on Tuesday, after the release of weak German economic sentiment data, as demand for the greenback remained under pressure after the International Monetary Fund cut its 2014 growth forecast for the U.S.
EUR/USD hit 1.3513 during European morning trade, the session low; the pair subsequently consolidated at 1.3568, inching down 0.03%.
The pair was likely to find support at 1.3513, Monday''s low and resistance at 1.3640, the high of June 4.
The ZEW Institute said the German economic sentiment index fell to an 18-month low of 29.8 this month, from a reading of 33.1 in May, compared to expectations for a rise to 35.0.
For the entire euro zone, the ZEW economic sentiment index rose to 58.4 in June, from a reading of 55.2 in May, confounding expectations for an increase to 59.6.
The dollar remained under pressure after the IMF on Monday cut its 2014 U.S. economic growth forecast, pointing out that the unusually harsh winter along with a “still-struggling housing market” will drag on recovery.
The IMF said it now expects the U.S. economy to expand 2% in 2014, down from its forecast of 2.8% in April.
Meanwhile, concerns over the ongoing Sunni insurgency in Iraq continued to weigh on market sentiment, amid fears over the impact of higher oil prices on global economic growth.
The euro was higher against the pound, with EUR/GBP edging up 0.14% to 0.8003.
In the U.K., official data showed that the rate of consumer price inflation rose 1.5% last month, slowing from 1.8% in April and hitting the lowest level since October 2009, compared to expectations for a reading of 1.7%.
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