Investing.com - The euro edged higher against the dollar on Monday but gains looked likely to remain limited after Friday’s strong U.S. jobs report raised the possibility that the Federal Reserve could start to taper stimulus before the end of the year.
EUR/USD edged up 0.06% to 1.3670 from Friday’s close of 1.3364, still holding above the seven week low of 1.3294 hit on Thursday.
The pair was likely to find support at 1.3316, Friday’s low and resistance at 1.3437, Friday’s high.
The U.S. economy added 204,000 jobs in October, the Department of Labor said Friday, significantly higher than the 125,000 expected by economists. The unemployment rate ticked up to 7.3% from an almost five year low of 7.2% the previous month.
The upbeat data indicated that the U.S. economy shrugged off the impact of the government shutdown and added to expectations that the Fed may start winding down its USD85 billion-a-month asset purchase program as soon as next month.
The euro remained under pressure after the European Central Bank unexpectedly cut its benchmark interest rate from 0.5% to 0.25% late last week and indicated that further rate cuts are still possible.
The euro edged lower against the yen, with EUR/JPY dipping 0.08% to 132.29.
Elsewhere, the dollar eased against the yen, but remained close to last Thursday’s seven week high of 99.40, with USD/JPY slipping 0.13% to 98.94.
EUR/USD edged up 0.06% to 1.3670 from Friday’s close of 1.3364, still holding above the seven week low of 1.3294 hit on Thursday.
The pair was likely to find support at 1.3316, Friday’s low and resistance at 1.3437, Friday’s high.
The U.S. economy added 204,000 jobs in October, the Department of Labor said Friday, significantly higher than the 125,000 expected by economists. The unemployment rate ticked up to 7.3% from an almost five year low of 7.2% the previous month.
The upbeat data indicated that the U.S. economy shrugged off the impact of the government shutdown and added to expectations that the Fed may start winding down its USD85 billion-a-month asset purchase program as soon as next month.
The euro remained under pressure after the European Central Bank unexpectedly cut its benchmark interest rate from 0.5% to 0.25% late last week and indicated that further rate cuts are still possible.
The euro edged lower against the yen, with EUR/JPY dipping 0.08% to 132.29.
Elsewhere, the dollar eased against the yen, but remained close to last Thursday’s seven week high of 99.40, with USD/JPY slipping 0.13% to 98.94.