The greenback was slightly higher against the euro in the Tuesday session, holding the single currency steady around the 1.35-figure. Weighing on the euro continues to be developments from the Eurozone over Greece's deficit concerns.
Economic reports released earlier in the session point toward further weakness in the US housing market, with existing home sales declining by 0.6%, albeit less than expected to 5.02 million units in February from 5.05 million units in January. Given tepid demand for homes, the January house price index reflected further deterioration with a decline of 3.3% and extending December's 1.5% decrease in home prices. Meanwhile, the Richmond Fed manufacturing survey improved to a reading of 6 in March versus 2 in February. The services component improved to 0 compared with a reading of minus 15 previously.
The calendar for Wednesday consists of February durable goods orders, new home sales and building permits. The headline durable goods orders report is seen flat in February, compared with a 2.6% increase previously while the core durable orders are anticipated to improve to 0.4% from a 1.0% decline previously. Rounding the reports will be the new home sales for February, seen improving to 320k units and up from 309k units from January.
The euro failed to hold onto earlier gains near the 1.3570-mark, relinquishing the 1.35-foothold by afternoon trading. In the session ahead, a barrage of Eurozone economic reports is due out, including Germany's March manufacturing PMI, Germany's March Ifo sentiment survey, the Eurozone manufacturing PMI and January industrial orders. Germany's Ifo sentiment survey is seen mixed, with the expectations component slipping to 100.5 in March versus 100.9 while the current assessment survey is forecast to improve to 90.9 from 89.8 in February.
EURUSD hovers near 1.3480, with interim support starting at 1.3450, followed by 1.34 and 1.3370. Subsequent floors will emerge around 1.3340, backed by 1.33 and 1.3250. On the topside, resistance will begin at 1.35, followed by 1.3530 and 1.3570. Additional ceilings are eyed at 1.36, followed by 1.3640 and 1.3680.