Shutterstock photo
Markets

Forex - EUR/USD eases, remains near 2-month lows

Shutterstock photo

Shutterstock photo

Investing.com - The euro eased against the dollar on Monday but remained close to two-month lows as mounting expectations that the Federal Reserve will scale back its easing program this year underpinned dollar demand.

EUR/USD hit 1.2819 during late Asian trade, the session low; the pair subsequently consolidated at 1.2847, edging up 0.11%.

The pair was likely to find support at 1.2795, Friday's low and the pair's lowest since April 4 and resistance at 1.2888, Friday's high.

The dollar rallied against the euro and the other major currencies on Friday after data showed that U.S. consumer sentiment rose more than expected in May, climbing to an almost six year high.

The University of Michigan said its consumer sentiment index jumped to 83.7 in May, its highest level since 2007, from 76.4 in the preceding month, outstripping expectations for a reading of 78.0.

The strong data fuelled speculation over a possible near-term exit from the U.S. central bank's asset purchase program.

Elsewhere, the euro dipped against the pound, with EUR/GBP slipping 0.08% to 0.8454 and was lower against the firmer yen, with EUR/JPY down 0.43% to 131.87.

The yen found support after Japan's Economy Minister Akira Amari indicated that the yen's correction from excessive strength was almost over and said that further yen weakness could damage the country's economy.

Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

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