Investing.com - The euro firmed against the dollar early Monday as investors sold the greenback amid profit taking.
A key consumer sentiment figure exceeded forecats in the U.S. on Friday and sparked a rally for the dollar on expectations that the Federal Reserve may put aside plans to stimulate the economy via monetary easing tools.
In Asian trading on Monday, EUR/USD was trading up 0.06% at 1.2340, up from a low of 1.2335 and off from a high of 1.2353.
The pair was likely to find support at 1.2257, Thursday’s low, and resistance at 1.2386, Tuesday’s high.
The Thomson Reuters/University of Michigan preliminary consumer sentiment index for August hit its highest level since May at 73.6, up from 72.3 last month, outpacing economists' forecasts for a 72.4 reading.
The numbers helped diminish expectations the Federal Reserve will stimulate the economy with a fresh round of quantitative easing, under which the Fed buys assets held by banks, pumping the financial system full of liquidity to drive down interest rates and spur recovery, weakening the dollar in the process.
Federal Reserve officials have said they cannot rule such action out.
The dollar initially gained on the data amid waning expectations for Federal Reserve intervention, though profit-taking sent the U.S. currency dipping against the euro on Monday.
Also in the U.S., the Conference Board reported that its leading index rose 0.4% in July, up from a 0.4% drop in June.
Analysts were predicting the index to rise by 0.2%.
The euro, meanwhile, was up against the pound and down against the yen, with EUR/GBP up 0.06% at 0.7864, and EUR/JPY trading down 0.01% at 98.12.
Investors are looking ahead to Wednesday, when the Federal Reserve releases the minutes of its most recent monetary policy meeting.
A key consumer sentiment figure exceeded forecats in the U.S. on Friday and sparked a rally for the dollar on expectations that the Federal Reserve may put aside plans to stimulate the economy via monetary easing tools.
In Asian trading on Monday, EUR/USD was trading up 0.06% at 1.2340, up from a low of 1.2335 and off from a high of 1.2353.
The pair was likely to find support at 1.2257, Thursday’s low, and resistance at 1.2386, Tuesday’s high.
The Thomson Reuters/University of Michigan preliminary consumer sentiment index for August hit its highest level since May at 73.6, up from 72.3 last month, outpacing economists' forecasts for a 72.4 reading.
The numbers helped diminish expectations the Federal Reserve will stimulate the economy with a fresh round of quantitative easing, under which the Fed buys assets held by banks, pumping the financial system full of liquidity to drive down interest rates and spur recovery, weakening the dollar in the process.
Federal Reserve officials have said they cannot rule such action out.
The dollar initially gained on the data amid waning expectations for Federal Reserve intervention, though profit-taking sent the U.S. currency dipping against the euro on Monday.
Also in the U.S., the Conference Board reported that its leading index rose 0.4% in July, up from a 0.4% drop in June.
Analysts were predicting the index to rise by 0.2%.
The euro, meanwhile, was up against the pound and down against the yen, with EUR/GBP up 0.06% at 0.7864, and EUR/JPY trading down 0.01% at 98.12.
Investors are looking ahead to Wednesday, when the Federal Reserve releases the minutes of its most recent monetary policy meeting.