Investing.com – The euro pushed lower against the U.S. dollar on Tuesday, weighed by the release of disappointing economic sentiment data from Germany, while markets eyed Federal Reserve Chair Janet Yellen’s testimony before Congress, due to begin later in the day.
EUR/USD hit 1.3596 during European morning trade, the pair’s lowest since July 11; the pair subsequently consolidated at 1.3596, edging down 0.17%.
The pair was likely to find support at 1.3576, the low of July 7 and resistance at 1.3640, Monday’s high.
In a report, the ZEW Institute said its index for economic sentiment in Germany fell to a 19-month low of 27.1 in July, from a reading of 29.8 the previous month. Analysts had expected the index to to tick down to 28.0 this month.
For the entire euro zone, the ZEW economic sentiment index rose to 61.8 this month, from a reading of 58.4 in June, confounding expectations for an increase to 62.3.
Meanwhile, investors remained cautious before Fed Chairwoman Janet Yellen testifies before Congress on Tuesday and Wednesday.
In the minutes of the Federal Reserve’s June policy meeting released last week, the U.S. central bank predicted an October close to its bond-buying stimulus program but did not hint at a timetable as to when interest rates may begin to rise afterwards.
The euro was also lower against the pound, with EUR/GBP retreating 0.51% to 0.7931.
Also Tuesday, the Office for National Statistics reported that U.K. consumer prices rose 1.9% on a year-over-year basis in June, accelerating from 1.5% in May and well above expectations of 1.6%.
Consumer prices ticked up 0.2% last month, the ONS said, compared to estimates of a 0.1% decline.
The upbeat data added to signs that the economic recovery in the U.K. is deepening, bolstering expectations that the Bank of England will raise interest rates before the end of the year.
Later in the day, the U.S. was to release data on retail sales, as well as data on import prices, business inventories and manufacturing activity in the Empire state.