Investing.com - The euro was lower against the dollar on Monday as a combination of concerns over the prospect of the U.S. government shutting down and political turmoil in Italy weighed.
EUR/USD hit 1.3478 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3495, shedding 0.20%.
The pair was likely to find support at 1.3460, the low of September 25 and resistance at 1.3536, the high of the same day.
The euro came under pressure after Silvio Berlusconi announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta’s coalition government and called for fresh elections to be held.
Meanwhile, data released on Monday showed that consumer price inflation in the euro zone rose at the slowest pace since February 2010 in September, sliding to 1.1% from 1.3% in August.
Core CPI, which excludes food, energy, alcohol, and tobacco costs slowed to 1% from 1.1% in August.
In the U.S., political wrangling in Washington over funding for President Barack Obama’s healthcare law continued over the weekend, fuelling fears over the prospect for a government shutdown.
Congress must pass a short-term budget by midnight on Monday in order to keep the government open.
Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.
The euro was trading close to eight-month lows against the stronger pound, with EUR/GBP sliding 0.19% to 0.8361 and hit three-week lows against the yen, with EUR/JPY down 0.88% to 131.66.
Elsewhere Monday, data showed that China’s HSBC manufacturing index was revised down to 50.2 from an initial reading of 51.2 this month, indicating that the recovery in the world’s second largest economy remains fragile.
Economists had expected an unchanged reading.
EUR/USD hit 1.3478 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3495, shedding 0.20%.
The pair was likely to find support at 1.3460, the low of September 25 and resistance at 1.3536, the high of the same day.
The euro came under pressure after Silvio Berlusconi announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta’s coalition government and called for fresh elections to be held.
Meanwhile, data released on Monday showed that consumer price inflation in the euro zone rose at the slowest pace since February 2010 in September, sliding to 1.1% from 1.3% in August.
Core CPI, which excludes food, energy, alcohol, and tobacco costs slowed to 1% from 1.1% in August.
In the U.S., political wrangling in Washington over funding for President Barack Obama’s healthcare law continued over the weekend, fuelling fears over the prospect for a government shutdown.
Congress must pass a short-term budget by midnight on Monday in order to keep the government open.
Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.
The euro was trading close to eight-month lows against the stronger pound, with EUR/GBP sliding 0.19% to 0.8361 and hit three-week lows against the yen, with EUR/JPY down 0.88% to 131.66.
Elsewhere Monday, data showed that China’s HSBC manufacturing index was revised down to 50.2 from an initial reading of 51.2 this month, indicating that the recovery in the world’s second largest economy remains fragile.
Economists had expected an unchanged reading.