Shutterstock photo
Markets

Forex - Euro at 8-month lows against stronger dollar

Shutterstock photo

Shutterstock photo

Investing.com -

Investing.com - The euro was hovering at eight month lows against the broadly stronger dollar on Monday after weak German economic data on Friday underlined concerns over the divergence in monetary policy between the European Central Bank and its major peers.

EUR/USD was little changed at 1.3432, close to the lowest level since November.

The pair was likely to find support at around the 1.3400 level and resistance at 1.3475.

The euro fell on Friday after a report showed that Germany's Ifo business climate index dropped to 108.0 in July, the third consecutive monthly decline.

The data added concerns over the outlook for the euro zone's largest economy. The euro has come under pressure since the ECB cut rates to record lows on June 5, in a bid to stave off the risk of deflation and shore up growth in the region.

Sentiment on the single currency was also hit by concerns that tougher sanctions on Russia would have a negative impact on the outlook for growth in the currency bloc, which has close trade ties with Moscow.

Demand for the dollar continued to be underpinned ahead of the latest U.S. employment report later in the week and the upcoming Federal Reserve statement on Wednesday. Investors were also awaiting final data on U.S. second-quarter growth on Wednesday.

Earlier this month Fed Chair Janet Yellen said that rates could rise sooner if the recovery in the labor market continued.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was close to six month highs at 81.12.

EUR/JPY edged up 0.06% to 136.82, not far from the five month lows of 136.35 reached last Thursday.

Elsewhere Monday, the dollar was close to three week highs against the yen, with USD/JPY easing up 0.03% to 101.86.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com Stocks & Forex App for Android!

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx