Investing.com - The euro slipped lower against the dollar on Tuesday as expectations that the Federal Reserve will scale back its monetary easing program this year supported the dollar.
EUR/USD hit 1.2885 during European morning trade, the pair’s lowest since May 23; the pair subsequently consolidated at 1.2908, sliding 0.17%.
The pair was likely to find support at 1.2800 and resistance at 1.2947, Monday’s high.
Demand for the dollar continued to be underpinned by expectations that the U.S. central bank is moving closer to winding down its USD85 billion-a-month asset purchase program.
Fed Chairman Ben Bernanke said last week that a decision to scale back bond purchases could be taken in the "next few meetings" depending on economic data.
The euro was sharply higher against the weaker yen, with EUR/JPY advancing 0.95% to 131.75. The yen turned broadly lower on Tuesday, as Japan’s Nikkei stabilized following extreme volatility in recent sessions.
The U.S. was to release private sector data on house price inflation and a report on consumer confidence later Tuesday.
