Investing.com - The euro traded lower against the dollar on
Monday as investors continued to seek safety in the greenback on
sentiments the Federal Reserve is growing closer to unwinding
Federal Reserve Chairman Ben Bernanke said last week that monetary
stimulus programs, which weaken the dollar to spur recovery, may
scale back this year if the economy improves.
In U.S. trading on Monday, EUR/USD was down 0.10% at 1.3112, up
from a session low of 1.3259 and off from a high of 1.3123.
The pair was likely to find support at 1.2956, the low from June 3,
and resistance at 1.3416, Wednesday's high.
The dollar continued to advance after the Federal Reserve Bank of
Philadelphia said late last week that its manufacturing index rose
to 12.5 in June from -5.2 in May, well above expectations for a
A separate report showed that U.S. existing home sales climbed 4.2%
to 5.18 million units in May from April's total of 4.97 million,
far surpassing market calls for a 0.6% increase.
Fed Chairman Ben Bernanke said last week that monetary authorities
could begin scaling back the U.S. central bank's USD85
billion-a-month asset purchasing program later this year and close
it down completely by the middle of 2014 if the economy gains
Elsewhere, the Ifo index of German business climate improved to
105.9 in June from 105.7 in May, in line with market expectations,
though the single currency shrugged off the data.
The euro, meanwhile, was down against the pound and down against
the yen, with EUR/GBP trading down 0.20% at 0.8492 and EUR/JPY
trading down 0.28% at 128.07.
On Tuesday, the U.S. is to publish official data on durable goods
orders, a leading indicator of production, as well as closely
watched reports on consumer confidence and new home sales.
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