Investing.com - The euro rose against the dollar on Monday as investors avoided the U.S. currency hours before a U.S. government shutdown was scheduled to occur due to congressional inability to agree on spending legislation.
In U.S. trading on Monday, EUR/USD was up 0.09% at 1.3535, up from a session low of 1.3478 and off from a high of 1.3556.
The pair was likely to find support at 1.3462, Wednesday's low, and resistance at 1.3564, Friday's high.
Congress must approve a spending package by the end of the day to avoid a government shutdown, and waning faith for a last-minute deal steered investors away from the U.S. currency on Monday.
Congressional Republicans and Democrats continued to spar over President Barack Obama's healthcare law, which is seen as a bargaining chip to fund a spending package to keep the government running.
Republicans oppose the president's healthcare reform and want it delayed in exchange for approving a spending deal.
Further pressuring the dollar lower were fears that political grandstanding will return anew later in October when the government hits its debt ceiling.
Congress must lift the spending limit or risk throwing the country into default.
Elsewhere, the euro found support on reports that Italy's Silvio Berlusconi was battling dissent within his own political party after he announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta’s coalition government and called for fresh elections.
Prime Minister Letta is going before parliament for a vote of confidence on Wednesday and will need to secure a majority to remain on in government.
Separately, data released on earlier showed that the euro zone's consumer price index rose at the slowest pace since February 2010 in September, sliding to 1.1% from 1.3% in August, which capped the euro's advance against the greenback.
Analysts were expecting a 1.3% reading.
Core CPI, which excludes food, energy, alcohol, and tobacco costs slowed to 1.0% from 1.1% in August, missing market calls for an unchanged 1.1% reading.
Elsewhere, the euro was down against the pound and up against the yen, with EUR/GBP trading down 0.16% at 0.8364 and EUR/JPY trading up 0.15% at 133.04.
On Tuesday, the euro zone is to publish data on the unemployment rate, while Spain and Italy are to release data on manufacturing activity. Germany is to release official data on the change in the number of people unemployed, a leading economic indicator.
In the U.S., the Institute of Supply Management is to produce a report on manufacturing activity, a leading economic indicator.
In U.S. trading on Monday, EUR/USD was up 0.09% at 1.3535, up from a session low of 1.3478 and off from a high of 1.3556.
The pair was likely to find support at 1.3462, Wednesday's low, and resistance at 1.3564, Friday's high.
Congress must approve a spending package by the end of the day to avoid a government shutdown, and waning faith for a last-minute deal steered investors away from the U.S. currency on Monday.
Congressional Republicans and Democrats continued to spar over President Barack Obama's healthcare law, which is seen as a bargaining chip to fund a spending package to keep the government running.
Republicans oppose the president's healthcare reform and want it delayed in exchange for approving a spending deal.
Further pressuring the dollar lower were fears that political grandstanding will return anew later in October when the government hits its debt ceiling.
Congress must lift the spending limit or risk throwing the country into default.
Elsewhere, the euro found support on reports that Italy's Silvio Berlusconi was battling dissent within his own political party after he announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta’s coalition government and called for fresh elections.
Prime Minister Letta is going before parliament for a vote of confidence on Wednesday and will need to secure a majority to remain on in government.
Separately, data released on earlier showed that the euro zone's consumer price index rose at the slowest pace since February 2010 in September, sliding to 1.1% from 1.3% in August, which capped the euro's advance against the greenback.
Analysts were expecting a 1.3% reading.
Core CPI, which excludes food, energy, alcohol, and tobacco costs slowed to 1.0% from 1.1% in August, missing market calls for an unchanged 1.1% reading.
Elsewhere, the euro was down against the pound and up against the yen, with EUR/GBP trading down 0.16% at 0.8364 and EUR/JPY trading up 0.15% at 133.04.
On Tuesday, the euro zone is to publish data on the unemployment rate, while Spain and Italy are to release data on manufacturing activity. Germany is to release official data on the change in the number of people unemployed, a leading economic indicator.
In the U.S., the Institute of Supply Management is to produce a report on manufacturing activity, a leading economic indicator.