Investing.com - The euro edged higher against the U.S. dollar in thin trade on Monday, as investors remained focused on developments in the euro zone and they awaited the release of more U.S. data during the week for further indications on the country’s economic recovery.
EUR/USD hit 1.2346 during late Asian trade, the daily high; the pair subsequently consolidated at 1.2347, adding 0.11%.
The pair was likely to find support at 1.2263, the low of August 15 and resistance at 1.2441, the high of August 7.
The euro found some support after German Chancellor Angela Merkel on Thursday backed European Central Bank President Mario Draghi's vow to do all that is necessary to defend euro.
Her comments increased expectations the ECB would buy Spanish and Italian bonds next month to lower the two countries' borrowing costs.
Meanwhile, a string of positive U.S. economic reports dampened expectations for fresh stimulus measures by the Federal Reserve.
Data on Friday showed that the University of Michigan’s consumer sentiment index for August hit its highest level in three months, coming in at 73.6 from 72.3 in July and outstripping forecasts for a reading of 72.4.
Meanwhile, the Conference Board reported that its index of leading indicators rose more-than-expected in July.
The data came after better-than-expected U.S. retail sales and industrial production data earlier in the week tempered expectations for another round of quantitative easing by the U.S. central bank.
Elsewhere, the euro was steady against the pound with EUR/GBP easing up 0.04%, to hit 0.7862.
Later in the day, France was to hold a government bond auction.
EUR/USD hit 1.2346 during late Asian trade, the daily high; the pair subsequently consolidated at 1.2347, adding 0.11%.
The pair was likely to find support at 1.2263, the low of August 15 and resistance at 1.2441, the high of August 7.
The euro found some support after German Chancellor Angela Merkel on Thursday backed European Central Bank President Mario Draghi's vow to do all that is necessary to defend euro.
Her comments increased expectations the ECB would buy Spanish and Italian bonds next month to lower the two countries' borrowing costs.
Meanwhile, a string of positive U.S. economic reports dampened expectations for fresh stimulus measures by the Federal Reserve.
Data on Friday showed that the University of Michigan’s consumer sentiment index for August hit its highest level in three months, coming in at 73.6 from 72.3 in July and outstripping forecasts for a reading of 72.4.
Meanwhile, the Conference Board reported that its index of leading indicators rose more-than-expected in July.
The data came after better-than-expected U.S. retail sales and industrial production data earlier in the week tempered expectations for another round of quantitative easing by the U.S. central bank.
Elsewhere, the euro was steady against the pound with EUR/GBP easing up 0.04%, to hit 0.7862.
Later in the day, France was to hold a government bond auction.