Forex - EUR/USD slips lower despite positive German data

Posted on at - The euro slipped lower against the U.S. dollar on Tuesday, despite the release of positive economic reports from Germany, as demand for the greenback remained broadly supported.

Forex - EUR/USD slips lower despite positive German dataEuro edges down vs. broadly stronger greenback

EUR/USD hit 1.2416 during European morning trade, the session low; the pair subsequently consolidated at 1.2431, edging down 0.08%.

The pair was likely to find support at 1.2372, Monday's low and resistance at 1.2571, the high of November 21.

Data on Tuesday confirmed that Germany narrowly avoided a recession in the third quarter, posting economic growth of 0.1%.

The report came a day after data showed that German business sentiment improved this month, snapping six successive months of declines.

The upbeat data indicated that the downturn the euro area’s largest economy may have ended and curbed expectations that the European Central Bank may soon embark on quantitative easing measures.

Meanwhile, the dollar continued to be underpinned after the minutes of the Federal Reserve's October meeting indicated last week that officials believe the economic recovery is strong enough to withstand external threats to growth, but offered little additional clarity about when rates could start to rise.

The Fed wound up its asset purchasing stimulus program last month and is expected to start raising rates around September 2015.

The euro was also higher against the pound, with EUR/GBP up 0.11% to 0.7931.

Later in the day, the U.S. was to release revised data on third quarter gross domestic product and a report on consumer confidence.

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