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Forex - Euro edges lower against dollar

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Investing.com -

Investing.com - The euro edged lower against the dollar in subdued trade on Monday, but losses were held in check amid expectations that the European Central Bank will hold off on further monetary easing for now.

EUR/USD dipped 0.05% to 1.3636, off session highs of 1.3668.

The pair was likely to find support at 1.3585 and resistance at 1.3676, Friday's high and a two-week high.

The ECB unveiled a package of measures to avert the threat of persistently low inflation in the euro area on Thursday, briefly sending the single currency to four month lows of 1.3502 against the dollar, before later erasing the day's losses.

The bank cut the main refinancing rate in the euro area to a record low 0.15% and imposed negative deposit rates on commercial lenders, in a bid to stimulate lending to businesses.

However, it stopped short of announcing an asset purchase program, a factor which lent support to the euro.

Data on Monday showed that euro zone investor confidence deteriorated unexpectedly in June, despite the ECB's new measures to support growth and inflation.

The Sentix investor confidence index fell to 8.5 this month from 12.8 in May, compared to expectations for an uptick to 13.2.

Trading conditions remained light due to the Whit Monday holiday in some parts of Europe.

The euro also slid lower against the yen, with EUR/JPY slipping 0.14% to 13.9.67.

Elsewhere Monday, the dollar was steady against the yen, with USD/JPY at 102.44, holding below Friday's highs of 102.60.

The dollar remained supported after Friday's nonfarm payrolls report for May indicated that the U.S. labor market is continuing to improve, with employment returning to its pre-recession peak.

The U.S. economy added 217,000 jobs last month, just under expectations for jobs growth of 218,000, while the unemployment rate remained unchanged at a five-and-a-half year low of 6.3%.

The pair showed little reaction after data on Monday showed that Japan's first quarter growth was revised sharply higher.

Japan's economy grew at an annualized rate of 6.7% in the first three months of the year, up from a preliminary estimate of 5.9% growth. The unexpected upward revision was due to a sharp upward revision in Japanese corporate capital spending.

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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.

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