Investing.com - The dollar moved lower against the euro on Monday after U.S. lawmakers and the White House over the weekend failed to agree on a spending package needed to reopen the government and lift the debt ceiling.
The U.S. is due to hit its debt ceiling on Thursday, after which Washington won't be able to guarantee all of its obligations.
In U.S. trading on Monday, EUR/USD was up 0.29% at 1.3579, up from a session low of 1.3520 and off from a high of 1.3598.
The pair was likely to find support at 1.3486, Wednesday's low, and resistance at 1.3607, Tuesday's high.
Negotiations between the White House and congressional Republicans and Democrats remained in a deadlock, with both sides unable to agree on a short-term debt ceiling increase.
A government shutdown, also the product of congressional ability to agree on a spending package, was set to enter its third week.
World finance ministers and central bank chiefs gathered in Washington for the annual meeting of the International Monetary Fund and World Bank, calling for urgent action to end the stalemate and avoid default, which could bruise global economic recovery.
IMF Managing Director Christine Lagarde said on Sunday that failure to raise the debt ceiling and fund the government has global policymakers worried.
“If there is that degree of disruption, that lack of certainty, that lack of trust in the U.S. signature, it would mean massive disruption the world over, and we would be at risk of tipping, yet again, into recession,” Lagarde said in an interview with NBC’S “Meet the Press” program.
Meanwhile in Europe, data released on Monday showed that industrial production in the euro zone rose 1.0% in August, beating market calls for a 0.8% increase, which gave the euro added support.
Elsewhere, the euro was flat against the pound and flat against the yen, with EUR/GBP trading down 0.01% at 0.8490 and EUR/JPY unchanged at 133.44.
On Tuesday, the ZEW Institute is to release its closely watched report on German economic sentiment, a leading indicator of economic health, as well as data on economic sentiment in the wider euro zone. The euro zone is to release official data on industrial production.
The U.S. is scheduled to release a report on manufacturing activity in the Empire state.
The U.S. is due to hit its debt ceiling on Thursday, after which Washington won't be able to guarantee all of its obligations.
In U.S. trading on Monday, EUR/USD was up 0.29% at 1.3579, up from a session low of 1.3520 and off from a high of 1.3598.
The pair was likely to find support at 1.3486, Wednesday's low, and resistance at 1.3607, Tuesday's high.
Negotiations between the White House and congressional Republicans and Democrats remained in a deadlock, with both sides unable to agree on a short-term debt ceiling increase.
A government shutdown, also the product of congressional ability to agree on a spending package, was set to enter its third week.
World finance ministers and central bank chiefs gathered in Washington for the annual meeting of the International Monetary Fund and World Bank, calling for urgent action to end the stalemate and avoid default, which could bruise global economic recovery.
IMF Managing Director Christine Lagarde said on Sunday that failure to raise the debt ceiling and fund the government has global policymakers worried.
“If there is that degree of disruption, that lack of certainty, that lack of trust in the U.S. signature, it would mean massive disruption the world over, and we would be at risk of tipping, yet again, into recession,” Lagarde said in an interview with NBC’S “Meet the Press” program.
Meanwhile in Europe, data released on Monday showed that industrial production in the euro zone rose 1.0% in August, beating market calls for a 0.8% increase, which gave the euro added support.
Elsewhere, the euro was flat against the pound and flat against the yen, with EUR/GBP trading down 0.01% at 0.8490 and EUR/JPY unchanged at 133.44.
On Tuesday, the ZEW Institute is to release its closely watched report on German economic sentiment, a leading indicator of economic health, as well as data on economic sentiment in the wider euro zone. The euro zone is to release official data on industrial production.
The U.S. is scheduled to release a report on manufacturing activity in the Empire state.