Investing.com - The euro trimmed losses against the U.S. dollar on Monday, as market sentiment slightly improved after the release of positive Spanish unemployment data, although U.S. budget concerns continued to weigh on investor confidence.
EUR/USD pulled away from 1.2987, the session low, to hit 1.3012 during European morning trade, still down 0.04%.
The pair was likely to find support at 1.2929, the low of December 11 and resistance at 1.3101, the high of March 1.
Official data showed that the number of unemployed people in Spain rose far less-than-expected in February, increasing by 59,400 after a 132,100 rise the previous month.
Analysts had expected the number of unemployed people to rise by 77,500 last month.
Sentiment on the euro remained vulnerable however, after preliminary data on Friday showed that consumer price inflation in the bloc ticked down to a annualized rate of 1.8% in February, from 2.0% the previous month, while a separate report showed that the unemployment rate in the region rose to a new record high of 11.9% in January from 11.8% the previous month.
Markets were also jittery after USD85 billion of automatic spending cuts, known as the "sequestration", began on Friday as lawmakers could not agree on spending cuts and tax reform to tackle the country's budget deficit.
U.S President Barack Obama said on Sunday he could compromise with Republican lawmakers by cutting welfare entitlements such as Medicare.
The euro was lower against the pound with EUR/GBP edging down 0.10%, to hit 0.8649.
Market sentiment also weakened after China announced more property market tightening measures on Friday, in a bid to contain housing costs.
EUR/USD pulled away from 1.2987, the session low, to hit 1.3012 during European morning trade, still down 0.04%.
The pair was likely to find support at 1.2929, the low of December 11 and resistance at 1.3101, the high of March 1.
Official data showed that the number of unemployed people in Spain rose far less-than-expected in February, increasing by 59,400 after a 132,100 rise the previous month.
Analysts had expected the number of unemployed people to rise by 77,500 last month.
Sentiment on the euro remained vulnerable however, after preliminary data on Friday showed that consumer price inflation in the bloc ticked down to a annualized rate of 1.8% in February, from 2.0% the previous month, while a separate report showed that the unemployment rate in the region rose to a new record high of 11.9% in January from 11.8% the previous month.
Markets were also jittery after USD85 billion of automatic spending cuts, known as the "sequestration", began on Friday as lawmakers could not agree on spending cuts and tax reform to tackle the country's budget deficit.
U.S President Barack Obama said on Sunday he could compromise with Republican lawmakers by cutting welfare entitlements such as Medicare.
The euro was lower against the pound with EUR/GBP edging down 0.10%, to hit 0.8649.
Market sentiment also weakened after China announced more property market tightening measures on Friday, in a bid to contain housing costs.