Investing.com - The euro broke a three day losing streak against the dollar Monday on agreement progress at the Merkel, Sarkozy meeting in Berlin and short covering.
EUR/USD hit a low of 1.2667 during U.S. trade. The pair is off a high of 1.2785 and is currently trading at 1.2739 up 0.16%.
The pair was likely to find support at 1.2721 and technical resistance exists at 1.2770.
The single currency broke it losing streak against the greenback and the franc gained 0.1% per euro, the strongest since September, after the nation's central bank president resigned after a currency trading scandal by his wife.
Euro bullishness was fueled by positive word from the Merkel/Sarkozy meeting in Berlin. Merkel stated that the two countries were very near agreement on how to make the European bail out fund more efficient.
Earlier, Italy's largest bank, UniCredit share rights dropped 57% from last week signaling greater fiscal trouble from the euro zone nation.
Futures traders increased their bets to a record number that the euro will decline against the dollar. The Commodity Futures Trading Commission reported that the difference between long and short positions soared to 138,909 in the week ending January 3rd.
Adam Cole of Royal Bank of Canada explained today's euro strength to Bloomberg, "The euro is rising today as traders purchase the shared currency to close short positions, rather than on optimism about the Merkel-Sarkozy meeting. It's more to do with very stretched positioning than anything else."
The Euro traded higher against the pound with EUR/GBP adding 0.17% to 0.8260.
Investors are awaiting French production numbers on Tuesday.
EUR/USD hit a low of 1.2667 during U.S. trade. The pair is off a high of 1.2785 and is currently trading at 1.2739 up 0.16%.
The pair was likely to find support at 1.2721 and technical resistance exists at 1.2770.
The single currency broke it losing streak against the greenback and the franc gained 0.1% per euro, the strongest since September, after the nation's central bank president resigned after a currency trading scandal by his wife.
Euro bullishness was fueled by positive word from the Merkel/Sarkozy meeting in Berlin. Merkel stated that the two countries were very near agreement on how to make the European bail out fund more efficient.
Earlier, Italy's largest bank, UniCredit share rights dropped 57% from last week signaling greater fiscal trouble from the euro zone nation.
Futures traders increased their bets to a record number that the euro will decline against the dollar. The Commodity Futures Trading Commission reported that the difference between long and short positions soared to 138,909 in the week ending January 3rd.
Adam Cole of Royal Bank of Canada explained today's euro strength to Bloomberg, "The euro is rising today as traders purchase the shared currency to close short positions, rather than on optimism about the Merkel-Sarkozy meeting. It's more to do with very stretched positioning than anything else."
The Euro traded higher against the pound with EUR/GBP adding 0.17% to 0.8260.
Investors are awaiting French production numbers on Tuesday.