Investing.com - The euro trimmed losses against the U.S. dollar on Monday, easing off a one-month trough but remained under pressure as expectations for an upcoming U.S. rate hike continued to broadly support the greenback.
EUR/USD pulled away from 1.0521, the pair's lowest since March 16, to hit 1.0588 during U.S. morning trade, still down 0.14%.
The pair was likely to find support at 1.0456, the low of March 16 and resistance at 1.0788, the high of April 9.
The single currency has fallen 13% against the dollar so far this year after the European Central Bank unveiled a trillion-euro quantitative easing program in January. The bank started asset purchases last month, pushing euro area bond yields to new lows.
Sentiment on the single currency was also hit as uncertainty over Greece’s bailout continued to weigh. Talks between Athens and its lenders on proposed economic reforms were expected to resume later Monday, ahead of a meeting of euro area finance ministers on April 24.
Meanwhile, demand for the dollar remained supported by expectations for higher interest rates, as investors regained confidence that the U.S. economy would continue to recover after recent economic reports pointed to a slowdown at the start of the year.
The greenback received a boost last week after comments by the presidents of the New York and Richmond Federal Reserve banks made the case for the Fed to begin policy tightening as early as the summer.
Some investors had pushed back the timing of a rate hike until late 2015 after a surprisingly weak U.S. employment report for March.
The euro was also lower against the pound, with EUR/GBP shedding 0.28% to 0.7229.