Investing.com - The euro edged up to a one-and-a-half week high against the U.S. dollar on Monday, as demand for the greenback mildly weakened amid profit-taking and thin trading volumes ahead of the New Year holiday.
Global financial markets closed early on Thursday, Christmas Eve, and remained shut for Christmas Day on Friday.
Heading into the final week of the year, trading volumes are expected to remain light as many traders already closed books due to the holiday period, reducing liquidity in the market and increasing volatility.
EUR/USD hit 1.0993 during U.S. morning trade, the pair’s highest since December 15; the pair subsequently consolidated at 1.0980, adding 0.16%.
The pair was likely to find support at 1.0899, the low of December 24 and resistance at 1.1059, the high of December 15.
With the first U.S. rate hike since 2006 out of the way, investors were now focusing on the pace of future rate increases. The Federal Reserve, from its forecasts, is anticipating four rate hikes next year.
However, the Fed funds futures currently suggests there will be just two rate increases, one in June and one in December.
Mixed U.S. economic reports released last week failed to offer clues as to how fast the U.S. central bank will raise interest rates next year.
The euro was higher against the pound, with EUR/GBP rising 0.31% to 0.7370.