OTTAWA (dpa-AFX) - The euro continued to trade lower against other major currencies in the pre-European session on Tuesday, as traders remain cautious ahead of the U.S. interest rate decision later in the week and as they await the outcome of the U.S.-China trade talks. Meanwhile, several European leaders voiced concerns over the EU-U.S. trade deal, calling it 'lopsided' and 'unsustainable'.
While the U.S. Fed is widely expected to leave interest rates unchanged, the announcement could impact the outlook for rates.
The Federal Reserve is seen holding rates steady between 4.25 percent and 4.50 percent on Wednesday, with investors looking for hints on whether a September cut is likely.
In the pre-European session today, the euro fell to a 6-day low of 171.56 against the yen, from an early high of 172.32. On the downside, 168.00 is seen as the next support level for the euro.
Against the U.S. and the Canadian dollars, the euro slid to near 2-week lows of 1.1574 and 1.5901 from early highs of 1.1599 and 1.5931, respectively. If the euro extends its downtrend, it is likely to find support around 1.13 against the greenback and 1.56 against the loonie.
The euro slipped to 0.9306 against the Swiss franc and 0.8673 against the pound, from early highs of 0.9316 and 0.8686, respectively. The euro may test support near 0.92 against the franc and 0.84 against the pound.
Against the Australia and the New Zealand dollars, the euro slid to more than 2-week lows of 1.7742 and 1.9392 from early highs of 1.7798 and 1.9441, respectively. The euro is likely to find support around 1.76 against the aussie and 1.92 against the kiwi.
Looking ahead, European Central Bank's consumer inflation expectations for June, Bank of England's consumer credit for June and U.K. mortgage approvals data are slated for release in the European session.
In the New York session, U.S. goods trade balance for June, wholesale inventories for June, U.S. S&P/Case-Shiller home price for May, U.S. Consumer Board's consumer confidence for July and U.S. Dallas Fed services index for July are due to be released.
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