Investing.com – The euro remained under pressure against the dollar on Monday but clawed back up from an earlier four month low after China indicated that it will continue to buy the single currency.
EUR/USD clawed up from 1.2875, the pair’s lowest since September 14, to hit 1.2913 during European late morning trade, gaining 0.05%.
The pair was likely to find support at 1.2702, the low of September 13 and resistance at 1.302, last Friday’s high.
Earlier in the day, central bank official Xu Nuojin said that China, holder of the world's largest pool of official reserves, should increase the proportion of non-dollar currencies it held.
However, the euro’s gains were limited after weekend reports in the German press suggested that France and Germany were putting Portugal under pressure to accept an Irish-style bailout package from the International Monetary Fund and the European Union. The reports were subsequently denied by Portugal.
Meanwhile, the cost of insuring European sovereign debt against default rose to a new record high Monday, ahead of billions in euro-zone government bond auctions scheduled to take place later in the week.
The euro was also higher against the pound, with EUR/GBP gaining 0.18% to hit 0.8316.
Later in the day, European Central Bank president Jean-Claude Trichet was to speak at a press conference in Basel.
EUR/USD clawed up from 1.2875, the pair’s lowest since September 14, to hit 1.2913 during European late morning trade, gaining 0.05%.
The pair was likely to find support at 1.2702, the low of September 13 and resistance at 1.302, last Friday’s high.
Earlier in the day, central bank official Xu Nuojin said that China, holder of the world's largest pool of official reserves, should increase the proportion of non-dollar currencies it held.
However, the euro’s gains were limited after weekend reports in the German press suggested that France and Germany were putting Portugal under pressure to accept an Irish-style bailout package from the International Monetary Fund and the European Union. The reports were subsequently denied by Portugal.
Meanwhile, the cost of insuring European sovereign debt against default rose to a new record high Monday, ahead of billions in euro-zone government bond auctions scheduled to take place later in the week.
The euro was also higher against the pound, with EUR/GBP gaining 0.18% to hit 0.8316.
Later in the day, European Central Bank president Jean-Claude Trichet was to speak at a press conference in Basel.