Investing.com – The euro was up against the U.S. dollar on Monday, hitting a fresh daily high amid concerns that the Federal Reserve would embark on a fresh round of monetary stimulus, to combat a slowdown in U.S. growth.
EUR/USD hit 1.3114 during early European trade, a fresh daily high; the pair subsequently consolidated at 1.3112, gaining 0.47%.
The pair was likely to find support at 1.2975, last Friday's low and short-term resistance at 1.3158.
Fears over a slowdown in the rate of U.S. economic growth sparked renewed speculation that Federal Reserve policy makers would announce a renewal of large-scale asset purchases, a strategy known as quantitative easing, after their meeting on Tuesday.
Quantitative easing increases the supply of money, causing inflation to rise. It is used to stimulate an economy in a situation where interest rates are already low.
The euro was also up against the pound, with EUR/GBP gaining 0.38% to hit 0.8379.
Later in the day, the U.S. was to publish industry data on home sales.
EUR/USD hit 1.3114 during early European trade, a fresh daily high; the pair subsequently consolidated at 1.3112, gaining 0.47%.
The pair was likely to find support at 1.2975, last Friday's low and short-term resistance at 1.3158.
Fears over a slowdown in the rate of U.S. economic growth sparked renewed speculation that Federal Reserve policy makers would announce a renewal of large-scale asset purchases, a strategy known as quantitative easing, after their meeting on Tuesday.
Quantitative easing increases the supply of money, causing inflation to rise. It is used to stimulate an economy in a situation where interest rates are already low.
The euro was also up against the pound, with EUR/GBP gaining 0.38% to hit 0.8379.
Later in the day, the U.S. was to publish industry data on home sales.