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Forex - Euro inches higher against dollar in subdued trade

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Forexpros - The euro inched higher against the U.S. dollar in subdued trade on Monday, tracking European shares higher, while the dollar remained under pressure amid concerns that the U.S. economy may require more support from the Federal Reserve.

EUR/USD hit 1.4434 during European early afternoon trade, the daily high; the pair subsequently consolidated at 1.4425, gaining 0.23%.

The pair was likely to find support at 1.4258, Friday's low and a four-day low and resistance at 1.4452, Friday's high.

The euro's gains remained limited on the back of the view that euro zone officials are not moving quickly to address the region's sovereign debt crisis.

On Sunday, German Chancellor Angela Merkel reiterated her opposition to calls for the euro zone to issue joint euro-denominated bonds as a way for indebted euro zone states to borrow.

The pair looked likely to remain rangebound amid speculation that Fed Chairman Ben Bernanke could indicate that further monetary easing may be necessary when he speaks at an economic symposium in Jackson Hole, Wyoming, on Friday.

The euro also inched higher against the pound, with EUR/GBP easing up 0.02% to hit 0.8743.

Also Monday, German Finance Minister Wolfgang Schaeuble said in a radio interview that the euro remained a stable currency, adding that markets still had confidence in the single currency.

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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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