Investing.com - The euro slipped lower against the dollar on Tuesday as investors’ awaited U.S. inflation data, ahead of Wednesday’s outcome of the Federal Reserve’s final policy meeting of the year. EUR/USD touched session lows of 1.3745 and was last down 0.05% to 1.3753, off highs of 1.3781. The pair was likely to find support at 1.3726, Monday’s low and near-term resistance at 1.3809. Investors remained cautious ahead of the outcome of the Fed’s two-day policy meeting on Wednesday, with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program. Markets were turning their attention to U.S. inflation data due out later in the session amid concerns that the subdued inflation outlook could prompt the Fed to keep its stimulus program in place for longer. Demand for the euro continued to be underpinned after a report on Tuesday showed that the ZEW index of German economic sentiment rose to 62.0 in December from November’s reading of 54.6. It was the highest level since April 2006. Economists had expected the index to tick up to 55.0 this month. The data came one day after a report showed that manufacturing activity in Germany rose to a 30 month high in November, bolstering the outlook for the recovery in the euro zone. Elsewhere, the dollar was fractionally lower against the yen, with USD/JPY edging down 0.05% to 102.96.

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