By Michael Kitchen, MarketWatch
LOS ANGELES (MarketWatch) — The euro ticked higher and the U.S. dollar extended its losses Tuesday, with Europe’s debt crisis squarely in focus.
The euro EURUSD +0.03% rose to $1.2795 during Asian hours, up from $1.2765 in late North American trade Monday, adding to its gains following a meeting of German and French leaders. See more on Monday’s currency moves.
German Chancellor Angela Merkel and French President Nicolas Sarkozy met Monday, with Merkel reporting some progress toward implementing tougher budget rules in the euro zone.
“The subsequent [Merkel-Sarkozy] press conference yielded little in the way of new initiatives. ... However, Merkel did suggest that the new budget rule book may be completed ahead of schedule,” Lloyds Bank analysts said in a note Tuesday.
CMC Markets analyst Michael Hewson said the closely watch currency pair would likely meet resistance at $1.2850, and “any overspill should be contained by the $1.3080 area.”
The dollar DXY -0.09% , meanwhile, moved broadly lower, as the dollar index slipped to 80.809 from 81.001 late Monday. The dollar index tracks the greenback against six other currencies.
The Japanese yen firmed slightly, as the dollar USDJPY -0.01% eased to ¥76.81 from ¥76.87 Monday, while the British pound GBPUSD -0.01% rose to $1.5480, up from $1.5457.
Michael Kitchen is Asia editor for MarketWatch and is based in Los Angeles.
