Investing.com – The euro pared losses against the U.S. dollar on Monday, easing off a six-day low as the single currency remained supported by the view that the European Central Bank was likely to raise interest rates next month.
EUR/USD hit 1.4019 during European afternoon trade, the pair’s lowest since March 18; the pair subsequently consolidated at 1.4049, shedding 0.26%.
The pair was likely to find support at 1.3979, the low of March 18 and resistance at 1.4194, Friday’s high.
ECB governing board member Ewald Nowotny said on Sunday that the central bank wanted to move towards a more "normal" monetary policy despite recent events in Japan.
ECB President Jean-Claude Trichet was to speak at the Academy of Sciences, in Paris later in the day. Markets expected him to reiterate his hawkish stance towards inflation.
Meanwhile, the greenback was boosted by hawkish comments from regional Federal Reserve officials.
Philadelphia Federal Reserve Bank President Charles Plosser said the U.S. central bank would have to reverse its loose monetary policy in the "not-too-distant future" to avoid sowing the seeds of inflation.
The Fed should hike interest rates from the current range near zero to 2.5% within a year under a plan Plosser unveiled Friday.
Plosser's comments were followed by St. Louis Fed President James Bullard, who said on Saturday that lengthening the 'extended period' of low rates could encourage a liquidity trap.
Elsewhere, the euro was up against the pound, with EUR/GBP climbing 0.06% to hit 0.8788.
Later in the day, the U.S. was to release industry data on pending home sales as well as official data on personal spending, personal income and personal consumption expenditures.
EUR/USD hit 1.4019 during European afternoon trade, the pair’s lowest since March 18; the pair subsequently consolidated at 1.4049, shedding 0.26%.
The pair was likely to find support at 1.3979, the low of March 18 and resistance at 1.4194, Friday’s high.
ECB governing board member Ewald Nowotny said on Sunday that the central bank wanted to move towards a more "normal" monetary policy despite recent events in Japan.
ECB President Jean-Claude Trichet was to speak at the Academy of Sciences, in Paris later in the day. Markets expected him to reiterate his hawkish stance towards inflation.
Meanwhile, the greenback was boosted by hawkish comments from regional Federal Reserve officials.
Philadelphia Federal Reserve Bank President Charles Plosser said the U.S. central bank would have to reverse its loose monetary policy in the "not-too-distant future" to avoid sowing the seeds of inflation.
The Fed should hike interest rates from the current range near zero to 2.5% within a year under a plan Plosser unveiled Friday.
Plosser's comments were followed by St. Louis Fed President James Bullard, who said on Saturday that lengthening the 'extended period' of low rates could encourage a liquidity trap.
Elsewhere, the euro was up against the pound, with EUR/GBP climbing 0.06% to hit 0.8788.
Later in the day, the U.S. was to release industry data on pending home sales as well as official data on personal spending, personal income and personal consumption expenditures.