Investing.com - The euro drifted lower against the dollar on Monday, but losses were limited as the U.S. government shutdown entered a second week, fuelling fears over the risk of a possible U.S. debt default.
EUR/USD pulled back from 1.3592, the session high to hit 1.3547 during U.S. morning trade, dipping 0.05%.
The pair was likely to find support at 1.3503, the low of October 3 and resistance at 1.3631, Friday’s high and an almost eight month high.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the government debt ceiling unless the Obama administration agrees to talks aimed at reducing the deficit.
The Treasury Department has estimated the U.S. government will not have enough cash to pay its bills if an agreement to raise its debt ceiling is not reached by October 17.
China’s vice finance minister warned Monday that a U.S. default could seriously harm Chinese economic interests and threaten the global economic recovery. China is the largest single holder of U.S. Treasury bills.
In the euro zone, data released on Monday showed that the economy grew by 0.3% in the second quarter, unchanged from a preliminary estimate and in line with forecasts.
A separate report showed that the Sentix index of euro zone investor confidence dropped to 6.1, from 6.5 in September as concerns over the political impasse in the U.S. hurt sentiment. Analysts had expected the index to rise to 10.6 this month.
Elsewhere, the single currency was lower against the pound and the yen, with EUR/GBP down 0.39% to 0.8432 and EUR/JPY skidding 0.38% to 131.59.
EUR/USD pulled back from 1.3592, the session high to hit 1.3547 during U.S. morning trade, dipping 0.05%.
The pair was likely to find support at 1.3503, the low of October 3 and resistance at 1.3631, Friday’s high and an almost eight month high.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the government debt ceiling unless the Obama administration agrees to talks aimed at reducing the deficit.
The Treasury Department has estimated the U.S. government will not have enough cash to pay its bills if an agreement to raise its debt ceiling is not reached by October 17.
China’s vice finance minister warned Monday that a U.S. default could seriously harm Chinese economic interests and threaten the global economic recovery. China is the largest single holder of U.S. Treasury bills.
In the euro zone, data released on Monday showed that the economy grew by 0.3% in the second quarter, unchanged from a preliminary estimate and in line with forecasts.
A separate report showed that the Sentix index of euro zone investor confidence dropped to 6.1, from 6.5 in September as concerns over the political impasse in the U.S. hurt sentiment. Analysts had expected the index to rise to 10.6 this month.
Elsewhere, the single currency was lower against the pound and the yen, with EUR/GBP down 0.39% to 0.8432 and EUR/JPY skidding 0.38% to 131.59.