Forex - EUR/USD eases off 1-month trough but remains under pressure
Investing.com
Published Apr 13, 2015 10:10AM ET
Euro trims losses against dollar, but Greece worries still weigh
Investing.com - The euro trimmed losses against the U.S. dollar on Monday, easing off a one-month trough but remained under pressure as expectations for an upcoming U.S. rate hike continued to broadly support the greenback.
EUR/USD pulled away from 1.0521, the pair's lowest since March 16, to hit 1.0588 during U.S. morning trade, still down 0.14%.
The pair was likely to find support at 1.0456, the low of March 16 and resistance at 1.0788, the high of April 9.
The single currency has fallen 13% against the dollar so far this year after the European Central Bank unveiled a trillion-euro quantitative easing program in January. The bank started asset purchases last month, pushing euro area bond yields to new lows.
Sentiment on the single currency was also hit as uncertainty over Greece’s bailout continued to weigh. Talks between Athens and its lenders on proposed economic reforms were expected to resume later Monday, ahead of a meeting of euro area finance ministers on April 24.
Meanwhile, demand for the dollar remained supported by expectations for higher interest rates, as investors regained confidence that the U.S. economy would continue to recover after recent economic reports pointed to a slowdown at the start of the year.
The greenback received a boost last week after comments by the presidents of the New York and Richmond Federal Reserve banks made the case for the Fed to begin policy tightening as early as the summer.
Some investors had pushed back the timing of a rate hike until late 2015 after a surprisingly weak U.S. employment report for March.
The euro was also lower against the pound, with EUR/GBP shedding 0.28% to 0.7229.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.