Investing.com -- EUR/USD posted modest gains on Monday reaching its highest level in three weeks, as currency traders continue to weigh whether the Federal Reserve will wait until 2016 before raising short-term interest rates.
The currency pair traded in a broad range between 1.1268 and 1.1397, before settling at 1.1363, up 0.0003 or 0.03% on the session. EUR/USD has been relatively steady over the last month, as investors await meetings from the Federal Open Market Committee and the European Central Bank to determine if any major monetary policy shifts have wider ramifications on the global foreign exchange market. Nearly three weeks have elapsed since the currency pair closed more than 1% in a positive or negative direction.
EUR/USD likely gained support at 1.1103, the low from September 23 and was met with resistance at 1.1460, the high from Sept. 18.
Early this week, a litany of Federal Reserve governors will offer their views of the state of the U.S. economy in a series of public appearances. Their comments could provide indications on whether the FOMC could raise its benchmark Federal Funds Rate during one of its final two meetings in the calendar year. The FOMC meets next on Oct. 27-28, before meeting for the final time this year on Dec. 15-16.
On Monday morning, Atlanta Fed president Dennis Lockhart indicated that the FOMC will have more economic data at its disposal in December to make the decision versus its meeting later this month. Last week, Lockhart said he will keep a close eye on U.S. consumer spending data as he weighs his decision.
Separately, Chicago Fed president Charles Evans said on Monday that he would prefer to wait until 2016 to raise rates, citing soft inflation data. St. Louis Fed president James Bullard will also discuss the economy and monetary policy on Tuesday morning at the National Association for Business Economics Annual Meetings in Washington.
Traders also await the release a steady stream of economic data later this week for further indications on the strength of the global economy. On Wednesday, a report from EuroStat is expected to show that industrial production in the euro zone declined by 0.5% for the month of August. It comes one month after industrial production rose by 0.6%, halting a three-month streak of losses. Inflation data will also be released on both continents toward the end of the week.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, fell to an intraday low of 94.67 on Monday, its lowest level in three weeks. The index rallied on Monday afternoon to close at 94.90, up 0.02% on the session.