Investing.com - The euro softened against the dollar on Monday after European Central Bank President Mario Draghi said monetary authorities were willing to provide low-costs loans to the euro zone's banks to keep interest rates from rising.
In U.S. trading on Monday, EUR/USD was down 0.20% at 1.3496, up from a session low of 1.3480 and off from a high of 1.3547.
The pair was likely to find support at 1.3325, Tuesday's low, and resistance at 1.3568, Thursday's high.
The euro softened after Draghi said that the European Central Bank may provide banks with a new round of low-cost loans known as long-term refinancing operations to ensure interest rates stay low in short-term money markets and keep inflation rates in target.
In 2011, the ECB began lending out EUR1 trillion in long term refinancing operations to spur recovery, which weaken the euro.
Elsewhere, data released earlier showed that the euro zone preliminary manufacturing purchasing managers’ index fell to 51.1 in September from a final reading of 51.4 in August. Analysts were expecting the index to rise to 51.8.
Conversely, the euro zone services PMI rose to 52.1, its highest level since June 2011, from 50.7 in August and well above expectations for a reading of 51.1.
Germany’s manufacturing PMI fell to 51.3 in September from a final reading of 51.8 in August, defying expectations for an improvement to 52.2.
The German services PMI rose to a seven month high of 54.4 from a reading of 52.8 in August. Analysts were expecting the index to tick up to 53.1
Also in Germany, Chancellor Angela Merkel's conservative party won general elections on Sunday, securing her a third term in office.
Across the Atlantic, the greenback came under pressure after New York Federal Reserve President William Dudley defended the U.S. central bank’s decision to leave its ultra-loose monetary policy unchanged.
Dudley said that adjustments to the Fed’s USD85 billion-a-month asset purchase program "need to be anchored in an assessment of how the economy is actually performing."
"The economy still needs the support of a very accommodative monetary policy," Dudley added.
Elsewhere, the euro was down against the pound and down against the yen, with EUR/GBP trading down 0.43% at 0.8413 and EUR/JPY trading down 0.76% at 133.34.
On Tuesday, the Ifo Institute is to release a closely watched report on German business climate, a leading economic indicator.
The U.S. is to release private-sector data on housing prices as well as a closely-watched report on consumer confidence.
In U.S. trading on Monday, EUR/USD was down 0.20% at 1.3496, up from a session low of 1.3480 and off from a high of 1.3547.
The pair was likely to find support at 1.3325, Tuesday's low, and resistance at 1.3568, Thursday's high.
The euro softened after Draghi said that the European Central Bank may provide banks with a new round of low-cost loans known as long-term refinancing operations to ensure interest rates stay low in short-term money markets and keep inflation rates in target.
In 2011, the ECB began lending out EUR1 trillion in long term refinancing operations to spur recovery, which weaken the euro.
Elsewhere, data released earlier showed that the euro zone preliminary manufacturing purchasing managers’ index fell to 51.1 in September from a final reading of 51.4 in August. Analysts were expecting the index to rise to 51.8.
Conversely, the euro zone services PMI rose to 52.1, its highest level since June 2011, from 50.7 in August and well above expectations for a reading of 51.1.
Germany’s manufacturing PMI fell to 51.3 in September from a final reading of 51.8 in August, defying expectations for an improvement to 52.2.
The German services PMI rose to a seven month high of 54.4 from a reading of 52.8 in August. Analysts were expecting the index to tick up to 53.1
Also in Germany, Chancellor Angela Merkel's conservative party won general elections on Sunday, securing her a third term in office.
Across the Atlantic, the greenback came under pressure after New York Federal Reserve President William Dudley defended the U.S. central bank’s decision to leave its ultra-loose monetary policy unchanged.
Dudley said that adjustments to the Fed’s USD85 billion-a-month asset purchase program "need to be anchored in an assessment of how the economy is actually performing."
"The economy still needs the support of a very accommodative monetary policy," Dudley added.
Elsewhere, the euro was down against the pound and down against the yen, with EUR/GBP trading down 0.43% at 0.8413 and EUR/JPY trading down 0.76% at 133.34.
On Tuesday, the Ifo Institute is to release a closely watched report on German business climate, a leading economic indicator.
The U.S. is to release private-sector data on housing prices as well as a closely-watched report on consumer confidence.