Forex - Euro steady against stronger dollar

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Investing.com - The euro was steady against the dollar on Monday as speculation that the Federal Reserve may scale back its easing program continued to underpin dollar demand.

EUR/USD hit 1.2996 during European afternoon trade, the session high; the pair subsequently consolidated at 1.2987, dipping 0.02%.

The pair was likely to find support at 1.2934, Friday's low and the pair's lowest since April 5 and resistance at 1.3050, Friday's high.

The dollar remained broadly stronger amid speculation over a possible near-term exit from the Fed's asset purchase program after recent strong U.S. employment data indicated that the economic outlook is improving.

The euro remained under pressure after a member of the European Central Bank's governing council said the bank could cut its deposit rate into negative territory. The deposit rate is the rate paid by the ECB on overnight deposits by euro zone banks.

Meanwhile, Italy saw borrowing costs fall to their lowest since January as the country successfully auctioned EUR8 billion of three and 13-year bonds on Monday.

The euro slipped lower against the pound, with EUR/GBP sliding 0.10% to 0.8444 and was steady at three-year highs against the yen, with EUR/JPY edging up 0.02% to 132.02.

The dollar was trading close to more than four-and-a-a-half year highs against the yen, with USD/JPY edging up 0.05% to 101.66, after hitting session highs of 102.16.

The yen fell to session lows against the dollar earlier after a weekend meeting of finance ministers from the Group of Seven industrialized economies refrained from criticizing Japan over policies which have resulted in a weaker yen.

The U.S. was to release official data on retail sales later in the trading day.



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This article appears in: Investing , Forex and Currencies

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