Investing.com - The euro firmed against the dollar on Monday as investors avoided the greenback ahead of the release of the Federal Reserve's March policy meeting on Wednesday.
The single currency, meanwhile, saw support after key central bankers said fresh policy easing measures may be under scrutiny but actual implementation isn't imminent.
In U.S. trading, EUR/USD was up 0.29% at 1.3742, up from a session low of 1.3673 and off a high of 1.3746.
The pair was likely to find support at 1.3643, the low from Feb. 27, and resistance at 1.3820, Wednesday's high.
The dollar weakened as markets prepped for Wednesday's minutes of the Fed’s March meeting.
On Friday, data revealed that the U.S. economy added 192,000 jobs in March, below expectations for jobs growth of 200,000.
The U.S. unemployment rate remained unchanged at 6.7%, compared to expectations for a downtick to 6.6%.
The numbers sparked some expectations that even though the Federal Reserve will continue to dismantle its monthly bond-buying program, the pace of which remains up in the air.
Fed asset purchases aim to drive recovery by suppressing long-term borrowing costs, weakening the dollar as a side effect.
The euro, meanwhile, received a shot in the arm after ECB policymaker Yves Mersch said earlier that while monetary authorities are working on plans to purchase assets to steer the euro zone away from deflationary purchases, such a program is not required yet.
Separately, Bundesbank President Jens Weidmann said that monetary policy cannot solve the financial crisis, and urged euro zone political leaders to enact fiscal and other reforms.
The comments came after ECB President Mario Draghi said last week that unconventional monetary policy instruments may be necessary to avert the risk of ongoing low inflation becoming entrenched in the euro zone.
The euro was up against the pound, with EUR/GBP up 0.09% to 0.8276, and up against the yen, with EUR/JPY up 0.11% at 141.70.