Shutterstock photo
Markets

Forex - Euro edges higher against dollar as Mideast tensions continue

Shutterstock photo

Shutterstock photo

Forex Pros - The euro edged higher against the U.S. dollar on Monday, as expectations of an early interest rate hike by the European Central Bank supported the single currency against a backdrop of continued unrest in the Middle East and North Africa.

EUR/USD hit 1.3786 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3783, rising 0.21%.

The pair was likely to find support at 1.3646, last Wednesday's low and short-term resistance at 1.3837, Friday's high and a 17-day high.

The anti-government demonstrations that swept the Middle East over the past month spread to Oman on Sunday, with protesters clashing with security forces. Meanwhile, in Libya, leader Muammar Gaddafi still controlled the capital Tripoli, after an uprising took control of the eastern part of the country.

The dollar has been hurt by the recent spike in oil prices amid fears that the U.S. economy will suffer more, given its strong reliance on consumer spending for growth.

Markets largely shrugged off news that that Ireland's main opposition party claimed election victory, after voters routed the government.

The euro was also slightly higher against the pound, with EUR/GBP easing up 0.02% to hit 0.8536.

Later in the day, the euro zone was to release official data on consumer price inflation, while the U.S. was to publish industry data on pending home sales as well as a report on manufacturing activity in the in the Chicago area. The U.S. was also to release official data on personal consumption expenditure and consumer price inflation.

Forex News

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

Latest Markets Videos