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Forex - EUR/USD eases off 4-month high amid profit taking

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Forex Pros - The euro dipped against the U.S. dollar amid profit taking on Monday, after rallying to a four-month high on the back of expectations for a short-term interest rate hike by the European Central Bank.

EUR/USD hit 1.4157 during early European trade, the daily low; the pair subsequently consolidated at 1.4163, slipping 0.13%.

The pair was likely to find support at 1.3979, Friday's low and short-term resistance at 1.4195, the days high and a four-month high.

On Friday, ECB President Jean-Claude Trichet maintained his recent hawkish stance on inflation, saying that the bank was "extremely attentive" on anchoring inflation expectations and describing a possible wage-price spiral as the "worst possible position."

Markets remained on the lookout for indications that the Group of Seven nations or Japan's Ministry of Finance would take further steps to weaken the yen after Friday's coordinated intervention in support of Japan.

Meanwhile, the euro was higher against the yen, with EUR/JPY rising 0.52% to hit 114.87.

Later in the day, Jean-Claude Trichet was to speak at a public engagement, while the U.S. was to publish a report on existing home sales.

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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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