Investing.com - The euro was steady against the U.S. dollar on Tuesday, as markets eyed a secodnd day of remarks by European Central Bank President Mario Draghi, while his comments on Monday continued to weigh on the single currency.
EUR/USD hit 1.3643 during late Asian trade, the pair''s highest since May 22; the pair subsequently consolidated at 1.3654, inching up 0.06%.
The pair was likely to find support at 1.3585, the low of February 13 and resistance at 1.3723, the high of May 21.
On Monday, ECB President Draghi said the bank saw a risk of a deflationary cycle taking hold in the euro zone.
Draghi said the ECB is ready to act should it see signs of a negative inflation spiral taking hold, and indicated that the bank is weighing a wide range of policy options, including interest rate cuts, and liquidity injections or broad-based asset purchases to help shore up the fragile recovery in the euro area.
"What we need to be particularly watchful for at the moment is the potential for a negative spiral to take hold between low inflation, falling inflation expectations and credit, in particular in stressed countries," Draghi said.
"There is a risk that disinflationary expectations take hold," prompting consumers and businesses to delay spending. "We are not resigned to allowing inflation to remain too low for too long," he added.
The comments were made at the new ECB annual conference in Sintra, Portugal.
The euro was lower against the pound, with EUR/GBP edging down 0.16% to 0.8089.
Later in the day, the U.S. was to produce data on durable goods orders, house price inflation and consumer confidence.