Investing.com – The euro erased early losses against the U.S. dollar on Monday, edging up to a fresh 5-month high, but gains were capped at a key resistance level of 1.35.
EUR/USD retreated from 1.3425, the daily low, to hit 1.3488 during European afternoon trade, gaining 0.03%.
The pair was likely to find support at 1.3285, last Friday's low and resistance at 1.3584, the high of April 16.
Earlier in the day, European Central Bank President Jean-Claude Trichet economic growth and inflation in the euro region will remain moderate, indicating that the bank had no plans to raise interest rates soon.
“The rate of inflation could increase slightly in the short term but should remain moderate over the policy-relevant horizon,” he said.
Meanwhile, the euro was down against the pound, with EUR/GBP shedding 0.16% to hit 0.8512.
Also Monday, the European Central Bank reported that euro zone M3 money supply grew more-than-expected in August, expanding at its fastest pace in almost one year, while private sector loan growth jumped to its strongest level in 14 months.
EUR/USD retreated from 1.3425, the daily low, to hit 1.3488 during European afternoon trade, gaining 0.03%.
The pair was likely to find support at 1.3285, last Friday's low and resistance at 1.3584, the high of April 16.
Earlier in the day, European Central Bank President Jean-Claude Trichet economic growth and inflation in the euro region will remain moderate, indicating that the bank had no plans to raise interest rates soon.
“The rate of inflation could increase slightly in the short term but should remain moderate over the policy-relevant horizon,” he said.
Meanwhile, the euro was down against the pound, with EUR/GBP shedding 0.16% to hit 0.8512.
Also Monday, the European Central Bank reported that euro zone M3 money supply grew more-than-expected in August, expanding at its fastest pace in almost one year, while private sector loan growth jumped to its strongest level in 14 months.