Investing.com - The euro firmed against the dollar on Monday after Germany's central bank hinted that the euro zone's benchmark interest rate could rise in the near future in consumer prices rise enough.
In U.S. trading on Monday, EUR/USD was up 0.16% at 1.3348, up from a session low of 1.3316 and off from a high of 1.3375.
The pair was likely to find support at 1.3205, Thursday's low, and resistance at 1.3380, Friday's high.
Germany’s Bundesbank on Monday said the European Central Bank’s commitment to keeping rates low to spur recovery doesn't mean the monetary authority won't take action to curb rising inflation rates.
In its monthly report, Germany’s Bundesbank said the euro zone economy would benefit from record low interest rates set by the ECB, though the report added that the ECB’s pledge to keep borrowing costs low for an extended period would depend on the medium-term inflation outlook.
Meanwhile in the U.S., a lack of data kept investors on the sidelines to await the release of the minutes from the Federal Reserve's July monetary policy meeting on Wednesday, which could provide clues as to when the bank may start to taper its USD85 billion-a-month asset purchase program.
Mixed economic indicators out of the U.S. have created uncertainty over when tapering will begin, with many investors betting on September and others pegging an announcement in December.
The euro, meanwhile, was down against the pound and up against the yen, with EUR/GBP trading down 0.11% at 0.8521 and EUR/JPY trading up 0.51% at 130.75.
The yen slumped after official data revealed that Japan posted a larger-than-expected trade deficit of JPY1.024 trillion in July. Exports rose 12.2% on a year-over-year basis, boosted by the weaker yen, while imports climbed 19.6%.
Analysts were expecting a JPY786 billion trade gap.
On Tuesday, Germany will release wholesale inflation data, while the U.S. will see the release of the Chicago Fed National Activity Index.
In U.S. trading on Monday, EUR/USD was up 0.16% at 1.3348, up from a session low of 1.3316 and off from a high of 1.3375.
The pair was likely to find support at 1.3205, Thursday's low, and resistance at 1.3380, Friday's high.
Germany’s Bundesbank on Monday said the European Central Bank’s commitment to keeping rates low to spur recovery doesn't mean the monetary authority won't take action to curb rising inflation rates.
In its monthly report, Germany’s Bundesbank said the euro zone economy would benefit from record low interest rates set by the ECB, though the report added that the ECB’s pledge to keep borrowing costs low for an extended period would depend on the medium-term inflation outlook.
Meanwhile in the U.S., a lack of data kept investors on the sidelines to await the release of the minutes from the Federal Reserve's July monetary policy meeting on Wednesday, which could provide clues as to when the bank may start to taper its USD85 billion-a-month asset purchase program.
Mixed economic indicators out of the U.S. have created uncertainty over when tapering will begin, with many investors betting on September and others pegging an announcement in December.
The euro, meanwhile, was down against the pound and up against the yen, with EUR/GBP trading down 0.11% at 0.8521 and EUR/JPY trading up 0.51% at 130.75.
The yen slumped after official data revealed that Japan posted a larger-than-expected trade deficit of JPY1.024 trillion in July. Exports rose 12.2% on a year-over-year basis, boosted by the weaker yen, while imports climbed 19.6%.
Analysts were expecting a JPY786 billion trade gap.
On Tuesday, Germany will release wholesale inflation data, while the U.S. will see the release of the Chicago Fed National Activity Index.