Investing.com - The euro slid against the dollar on Monday as investors sold the single currency for profits, ending a rally stemming from Federal Reserve Chairman Ben Bernanke's Friday speech hinting at the possibility for a third round of bond purchases from banks.
In Asian trading on Monday, EUR/USD was trading down 0.09% at 1.2566, on part with a low of 1.2566 and off from a high of 1.2574.
The pair was likely to find support at 1.2494, Friday's low, and resistance at 1.2637, Friday's high.
On Friday, Bernanke said in a speech that the U.S. central bank won't rule out further monetary easing.
The euro rose against the dollar initially after Bernanke said in his speech at the Fed's annual symposium in Jackson Hole, Wyoming, that monetary authorities remain ready to intervene with stimulus should the economy fail to demonstrate significant improvement, especially in the labor market.
"The costs of nontraditional policies, when considered carefully, appear manageable, implying that we should not rule out the further use of such policies if economic conditions warrant," Bernanke said in prepared remarks at his speech.
"Over the past five years, the Federal Reserve has acted to support economic growth and foster job creation, and it is important to achieve further progress, particularly in the labor market. Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability."
The news sent the euro soaring against the dollar in that stimulus measures weaken the greenback.
The Fed has not ruled out rolling out a third round of quantitative easing, which sees the U.S. central bank buying bonds held by financial institutions, pumping them full of liquidity in the process to encourage investing and hiring.
The euro, however, faces headwinds of its own, as markets continue to wait for hints that the European Central Bank is growing closer to buying Italian and Spanish sovereign debt to lower borrowing costs there, which sparked profit-taking in early Asian trading on Monday.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP down 0.05% at 0.7926, and EUR/JPY trading down 0.19% at 98.39.
Later Monday in the eurozone, ECB President Mario Draghi is scheduled to testify before the European Parliament's Economic and Monetary Affairs Committee, in Brussels.
Spain and Italy, meanwhile, will release official data on manufacturing activity.
U.S. markets will be closed for the Labor Day holiday.
In Asian trading on Monday, EUR/USD was trading down 0.09% at 1.2566, on part with a low of 1.2566 and off from a high of 1.2574.
The pair was likely to find support at 1.2494, Friday's low, and resistance at 1.2637, Friday's high.
On Friday, Bernanke said in a speech that the U.S. central bank won't rule out further monetary easing.
The euro rose against the dollar initially after Bernanke said in his speech at the Fed's annual symposium in Jackson Hole, Wyoming, that monetary authorities remain ready to intervene with stimulus should the economy fail to demonstrate significant improvement, especially in the labor market.
"The costs of nontraditional policies, when considered carefully, appear manageable, implying that we should not rule out the further use of such policies if economic conditions warrant," Bernanke said in prepared remarks at his speech.
"Over the past five years, the Federal Reserve has acted to support economic growth and foster job creation, and it is important to achieve further progress, particularly in the labor market. Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability."
The news sent the euro soaring against the dollar in that stimulus measures weaken the greenback.
The Fed has not ruled out rolling out a third round of quantitative easing, which sees the U.S. central bank buying bonds held by financial institutions, pumping them full of liquidity in the process to encourage investing and hiring.
The euro, however, faces headwinds of its own, as markets continue to wait for hints that the European Central Bank is growing closer to buying Italian and Spanish sovereign debt to lower borrowing costs there, which sparked profit-taking in early Asian trading on Monday.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP down 0.05% at 0.7926, and EUR/JPY trading down 0.19% at 98.39.
Later Monday in the eurozone, ECB President Mario Draghi is scheduled to testify before the European Parliament's Economic and Monetary Affairs Committee, in Brussels.
Spain and Italy, meanwhile, will release official data on manufacturing activity.
U.S. markets will be closed for the Labor Day holiday.