Investing.com - The euro rose against the dollar on Monday after a U.S. government shutdown entered a second week amid growing fears that political brinkmanship may bring the world's largest economy to the edge of default.
Closed government agencies left markets without the releases of economy indicators, which kept trading subdued and cautious.
In U.S. trading on Monday, EUR/USD was up 0.14% at 1.3573, up from a session low of 1.3543 and off from a high of 1.3592.
The pair was likely to find support at 1.3539, Friday's low, and resistance at 1.3645, Thursday's high.
An impasse among U.S. lawmakers and the White House over terms needed to create a spending package and reopen the government sent investors avoiding the dollar on Monday.
Markets were also growing increasingly worried that the deadlock will affect negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by Oct. 17, after which the risk of default rises.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the government debt ceiling unless the Obama administration agrees to talks aimed at reducing the deficit.
Meanwhile in the euro zone, data released earlier revealed that the economy grew by 0.3% in the second quarter, unchanged from a preliminary estimate and in line with forecasts.
A separate report showed that the Sentix index of euro zone investor confidence dropped to 6.1 in October from 6.5 in September as concerns over the political impasse in the U.S. hurt sentiment.
Analysts had expected the index to rise to 10.6 this month.
Elsewhere, the euro was down against the pound and down against the yen, with EUR/GBP trading down 0.34% at 0.8437 and EUR/JPY trading down 0.34% at 131.66.
On Tuesday in the euro zone, Germany is to release data on the trade balance and factory orders.
Closed government agencies left markets without the releases of economy indicators, which kept trading subdued and cautious.
In U.S. trading on Monday, EUR/USD was up 0.14% at 1.3573, up from a session low of 1.3543 and off from a high of 1.3592.
The pair was likely to find support at 1.3539, Friday's low, and resistance at 1.3645, Thursday's high.
An impasse among U.S. lawmakers and the White House over terms needed to create a spending package and reopen the government sent investors avoiding the dollar on Monday.
Markets were also growing increasingly worried that the deadlock will affect negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by Oct. 17, after which the risk of default rises.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the government debt ceiling unless the Obama administration agrees to talks aimed at reducing the deficit.
Meanwhile in the euro zone, data released earlier revealed that the economy grew by 0.3% in the second quarter, unchanged from a preliminary estimate and in line with forecasts.
A separate report showed that the Sentix index of euro zone investor confidence dropped to 6.1 in October from 6.5 in September as concerns over the political impasse in the U.S. hurt sentiment.
Analysts had expected the index to rise to 10.6 this month.
Elsewhere, the euro was down against the pound and down against the yen, with EUR/GBP trading down 0.34% at 0.8437 and EUR/JPY trading down 0.34% at 131.66.
On Tuesday in the euro zone, Germany is to release data on the trade balance and factory orders.