Forex Pros – The euro trimmed losses against the U.S. dollar on Tuesday, but remained under pressure after Japanese officials said radiation levels around the earthquake-stricken Fukushima Daiichi nuclear plant had fallen.
EUR/USD clawed back up from 1.3856, the pair’s lowest since Friday, to hit 1.3945 during early U.S. trade, shedding 0.32%.
The pair was likely to find support at 1.3751, Friday’s low and resistance at 1.4035, the high of March 7 and a four-month high.
The announcement was made after a fire was extinguished at the plant. Earlier Tuesday, an explosion at the No. 2 reactor at the nuclear power plant, located 155 miles northeast of Tokyo, sent low levels of radiation floating towards the city.
Meanwhile, in the U.S., the New York Federal Reserve Bank reported that its manufacturing index topped expectations in March, climbing to 17.5 from 15.4 the previous month. Analysts had expected the index to rise to 16.5 this month.
A separate report showed that U.S. import prices rose more than expected in February as costs increased for energy, industrial supplies and food.
Later in the day, the U.S. Fed’s Federal Open Market Committee was to announce its federal funds rate.
The euro was sharply lower against the yen, with EUR/JPY tumbling 1.23% to hit 112.78.
Also Tuesday, a worse-than-expected reading for German economic sentiment in March weighed on the single currency.
The Munich based ZEW Centre for Economic Research reported that its index of German economic expectations fell to 14.1 points in March from 15.7 points in February, saying the Japanese earthquake “could slow down the dynamics of German economic growth at least in the short run.”
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