Investing.com - The euro extended losses against the U.S. dollar on Monday, falling to a session low after the European Central Bank said media reports that it may set limits on the yields of euro zone government bonds were misleading.
EUR/USD hit 1.2296 during European afternoon trade, the session low; the pair subsequently consolidated at 1.2309, shedding 0.19%.
The pair was likely to find support at 1.2240, the low of August 10 and resistance at 1.2367, the session high.
The euro found support earlier, after German magazine Der Spiegel reported Sunday that the ECB may set an interest rate threshold on purchases of euro-area sovereign debt at its next policy meeting in September, beyond which its bond buying program would be activated.
Responding to the report, the EBC said it was "absolutely misleading" to report on decisions that have not yet been taken, and added that it would act "strictly within its mandate".
Investors were looking ahead to a series of euro zone meetings later in the week to discuss measures to ease the debt crisis.
Luxemburg Prime Minister Jean-Claude Juncker, who also heads the group of euro zone finance ministers, was to hold talks with Greek Prime Minister Antonis Samaras on Wednesday, to discuss a two-year extension of the country’s economic reform program.
Market participants were also anticipating the minutes of the Federal Reserve’s August policy meeting later in the week, amid speculation over how close the U.S. central bank may be to implementing another round of stimulus measures.
Upbeat U.S. economic data released last week indicated that the economy may be stabilizing and tempered expectations for another round of quantitative easing by the Fed.
The euro was also trading close to session lows against the pound and the yen, with EUR/GBP slipping 0.21% to 0.7842 and EUR/JPY shedding 0.25% to trade at 97.87.
Trade looked likely to remain subdued on Monday, with no significant economic data releases on the calendar, while volumes were light with many market participants on summer holidays.
EUR/USD hit 1.2296 during European afternoon trade, the session low; the pair subsequently consolidated at 1.2309, shedding 0.19%.
The pair was likely to find support at 1.2240, the low of August 10 and resistance at 1.2367, the session high.
The euro found support earlier, after German magazine Der Spiegel reported Sunday that the ECB may set an interest rate threshold on purchases of euro-area sovereign debt at its next policy meeting in September, beyond which its bond buying program would be activated.
Responding to the report, the EBC said it was "absolutely misleading" to report on decisions that have not yet been taken, and added that it would act "strictly within its mandate".
Investors were looking ahead to a series of euro zone meetings later in the week to discuss measures to ease the debt crisis.
Luxemburg Prime Minister Jean-Claude Juncker, who also heads the group of euro zone finance ministers, was to hold talks with Greek Prime Minister Antonis Samaras on Wednesday, to discuss a two-year extension of the country’s economic reform program.
Market participants were also anticipating the minutes of the Federal Reserve’s August policy meeting later in the week, amid speculation over how close the U.S. central bank may be to implementing another round of stimulus measures.
Upbeat U.S. economic data released last week indicated that the economy may be stabilizing and tempered expectations for another round of quantitative easing by the Fed.
The euro was also trading close to session lows against the pound and the yen, with EUR/GBP slipping 0.21% to 0.7842 and EUR/JPY shedding 0.25% to trade at 97.87.
Trade looked likely to remain subdued on Monday, with no significant economic data releases on the calendar, while volumes were light with many market participants on summer holidays.