Investing.com – The euro erased early losses against the U.S. dollar on Monday, edging up to a fresh 5-month high as concerns that the rate of U.S. economic growth is slowing weighed on the dollar.
EUR/USD retreated from 1.3425, the daily low, to hit 1.3496 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 said that the newly-created European Systemic Risk Board will not change the mandate of the ECB in any way, even though the central bank is entrusted with the responsibility of overseeing it.
Mr. Trichet said that the three main tasks of the ESRB will be to identify and prioritize risks; raise early red flags when significant risks arise; and issue recommendations for action to counter those risks.
"One lesson from our experience of the crisis is that there should not be any 'pockets' of financial systems that are not considered and understood for their implications for financial stability," Mr. Trichet said.
Meanwhile, the euro was down against the pound, with EUR/GBP shedding 0.16% to hit 0.8512.
Also Monday, economist Nouriel Roubini, famous for forecasting the credit crisis, warned that the U.S. economy could descend into a second recession. He also said that second-quarter GDP figures for the U.S. were likely to be revised down after “awful” June housing data.
EUR/USD retreated from 1.3425, the daily low, to hit 1.3496 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 said that the newly-created European Systemic Risk Board will not change the mandate of the ECB in any way, even though the central bank is entrusted with the responsibility of overseeing it.
Mr. Trichet said that the three main tasks of the ESRB will be to identify and prioritize risks; raise early red flags when significant risks arise; and issue recommendations for action to counter those risks.
"One lesson from our experience of the crisis is that there should not be any 'pockets' of financial systems that are not considered and understood for their implications for financial stability," Mr. Trichet said.
Meanwhile, the euro was down against the pound, with EUR/GBP shedding 0.16% to hit 0.8512.
Also Monday, economist Nouriel Roubini, famous for forecasting the credit crisis, warned that the U.S. economy could descend into a second recession. He also said that second-quarter GDP figures for the U.S. were likely to be revised down after “awful” June housing data.