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Forex - EUR/USD rises but upside seen limited

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Investing.com -

Investing.com - The euro rose against the U.S. dollar on Monday, but gains were expected to remain limited as the Federal Reserve's recent decision to raise interest rates continued to support demand for the greenback.

Trading volumes were expected to remain limited ahead of the Christmas Holiday.

EUR/USD hit 1.0908 during U.S. morning trade, the pair's highest since December 17; the pair subsequently consolidated at 1.0891, rising 0.25%.

The pair was likely to find support at 1.0802, Friday's low and resistance at 1.1007, the high of December 16.

The dollar remained supported after the Fed hiked interest rates by a quarter of a percentage point to a range between 0.25% and 0.5% in a widely expected move.

Commenting on the decision, Fed Chair Janet Yellen said the FOMC will not be mechanical in its approach to normalize monetary policy and that future rate hikes would be gradual and data dependent.

Separately, markets remained jittery after crude oil prices fell to 34.29$ on Friday, the lowest level since 2004, amid renewed worries over a global supply glut.

The euro was higher against the pound, with EUR/GBP edging up 0.11% to 0.7302.

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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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