Investing.com - The euro held steady against the U.S. dollar on Friday, hovering near seven-and-a-half month highs as investors continued to monitor developments in the U.S. amid fears over the economic consequences of the recent U.S. government shutdown.
EUR/USD hit 1.3703 during European afternoon trade, the pair's highest since February 1; the pair subsequently consolidated at 1.3689, adding 0.10%.
The pair was likely to find support at 1.3581, the low of October 3 and resistance at 1.3711, the high of February 1.
The dollar remained under pressure amid fears over the impact of the government shutdown on the already fragile economic recovery, which could prompt the Federal Reserve to delay plans for scaling back its stimulus program until at least the start of next year.
The possibility of another debt crisis also loomed, as the temporary debt ceiling agreement reached early Thursday does not resolve the underlying budgetary issues dividing Republicans and Democrats.
The deal will fund the government until January 15 and raise the government borrowing limit until February 7. Both sides also agreed to talks over broad budget issues in an attempt to reach a longer-term deal by December 13.
Separately, risk sentiment found support after official data earlier showed that China gross domestic product grew by 7.8% in the third quarter, in line with expectations and up from 7.5% in the three months to June.
The data eased concerns over the strength of the recovery in the world's second-largest economy.
The euro was lower against the pound with EUR/GBP edging down 0.12%, to 0.8449.
EUR/USD hit 1.3703 during European afternoon trade, the pair's highest since February 1; the pair subsequently consolidated at 1.3689, adding 0.10%.
The pair was likely to find support at 1.3581, the low of October 3 and resistance at 1.3711, the high of February 1.
The dollar remained under pressure amid fears over the impact of the government shutdown on the already fragile economic recovery, which could prompt the Federal Reserve to delay plans for scaling back its stimulus program until at least the start of next year.
The possibility of another debt crisis also loomed, as the temporary debt ceiling agreement reached early Thursday does not resolve the underlying budgetary issues dividing Republicans and Democrats.
The deal will fund the government until January 15 and raise the government borrowing limit until February 7. Both sides also agreed to talks over broad budget issues in an attempt to reach a longer-term deal by December 13.
Separately, risk sentiment found support after official data earlier showed that China gross domestic product grew by 7.8% in the third quarter, in line with expectations and up from 7.5% in the three months to June.
The data eased concerns over the strength of the recovery in the world's second-largest economy.
The euro was lower against the pound with EUR/GBP edging down 0.12%, to 0.8449.