Investing.com - The euro held steady against the U.S. dollar in subdued trade on Monday, amid indications the U.S. economy was strengthening, however lingering concerns over a series of downgrades in euro zone countries continued to weigh on the single currency.
EUR/USD hit 1.3043 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3044, easing down 0.05%.
The pair was likely to find support at 1.2956, the low of December 15 and resistance at 1.3131, the high of December 20.
With most markets in Asia closed for the Christmas holiday and many investors already away on year-end leave, trading volumes were low, resulting in subdued trade.
Government data showed Friday that U.S. new home sales rose to a seven-month high in November, while durable goods orders rose a better-than-expected 3.8% in November from October.
Both reports came amid a week marked by bullish U.S. economic indicators, including a report showing that initial jobless claims fell to the lowest level since April 2008.
Meanwhile, the threat of mass credit ratings downgrades for euro zone countries still lingered, with Standard & Poor's yet to announce if it will cut ratings on any of the 15 countries it has on credit watch negative.
Two independent European government sources said Friday that S&P was not expected to release its verdict on euro zone debt ratings until January.
Italy saw the yield on its ten-year bonds top the critical 7%-threshold on Friday, a level widely viewed as unsustainable in the long term, renewing fears over the fiscal health of the euro zone’s third largest economy.
Elsewhere, the euro was also modestly lower against the pound, with EUR/GBP inching down 0.05%, to hit 0.8368.
Investors expect trading to be quiet throughout the day, with markets in Europe, the U.K. and the U.S. all closed for the Boxing Day holiday..
EUR/USD hit 1.3043 during late Asian trade, the daily low; the pair subsequently consolidated at 1.3044, easing down 0.05%.
The pair was likely to find support at 1.2956, the low of December 15 and resistance at 1.3131, the high of December 20.
With most markets in Asia closed for the Christmas holiday and many investors already away on year-end leave, trading volumes were low, resulting in subdued trade.
Government data showed Friday that U.S. new home sales rose to a seven-month high in November, while durable goods orders rose a better-than-expected 3.8% in November from October.
Both reports came amid a week marked by bullish U.S. economic indicators, including a report showing that initial jobless claims fell to the lowest level since April 2008.
Meanwhile, the threat of mass credit ratings downgrades for euro zone countries still lingered, with Standard & Poor's yet to announce if it will cut ratings on any of the 15 countries it has on credit watch negative.
Two independent European government sources said Friday that S&P was not expected to release its verdict on euro zone debt ratings until January.
Italy saw the yield on its ten-year bonds top the critical 7%-threshold on Friday, a level widely viewed as unsustainable in the long term, renewing fears over the fiscal health of the euro zone’s third largest economy.
Elsewhere, the euro was also modestly lower against the pound, with EUR/GBP inching down 0.05%, to hit 0.8368.
Investors expect trading to be quiet throughout the day, with markets in Europe, the U.K. and the U.S. all closed for the Boxing Day holiday..