Investing.com - The euro continued to give up against the U.S. dollar during Monday’s Asian session as traders await the start of the European Central Bank meeting later this week.
In Asian trading Monday, EUR/USD fell 0.09% to 1.3481. After dipping 2.15% last week, the pair is likely to find support at 1.3425 and resistance at 1.3570, the high of October 15.
In the week ahead, investors will be awaiting the outcome of Thursday’s ECB policy meeting and press conference with President Mario Draghi.
The consensus among traders is that ECB will keep rates at 0.5%, but some major global banks see things differently.
Bank of America Corp., UBS AG and Royal Bank of Scotland Group Plc forecast the ECB will lower rates this week, Bloomberg reported. The common currency came under pressure last week after a report showed that the euro zone unemployment rate rose to a record high 12.2% in September.
Disappointing data is seen as putting pressure on ECB to lower rates to stimulate growth. Some traders believe ECB could lean towards easing, as it has in the past, rather than lower rates.
Later Monday, Spain and Italy are to release data on manufacturing activity. Italy and Spain are the euro zone’s third- and fourth-largest economies, respectively.
In U.S. economic news out last Friday, the Institute of Supply Management said Friday that its manufacturing purchasing managers’ index rose to 56.4 in October, the highest since April 2011, from 56.2 in September. Economists had expected the index to tick down to 55.0.
That data increased speculation the Federal Reserve could move to pare its own easing program soon than some would like to see, in turn pressuring the euro.
Elsewhere, EUR/GBP fell 0.06% to 0.8468 while EUR/JPY inched down 0.02% to 133.15. Markets in Japan are closed Monday for a holiday.
In Asian trading Monday, EUR/USD fell 0.09% to 1.3481. After dipping 2.15% last week, the pair is likely to find support at 1.3425 and resistance at 1.3570, the high of October 15.
In the week ahead, investors will be awaiting the outcome of Thursday’s ECB policy meeting and press conference with President Mario Draghi.
The consensus among traders is that ECB will keep rates at 0.5%, but some major global banks see things differently.
Bank of America Corp., UBS AG and Royal Bank of Scotland Group Plc forecast the ECB will lower rates this week, Bloomberg reported. The common currency came under pressure last week after a report showed that the euro zone unemployment rate rose to a record high 12.2% in September.
Disappointing data is seen as putting pressure on ECB to lower rates to stimulate growth. Some traders believe ECB could lean towards easing, as it has in the past, rather than lower rates.
Later Monday, Spain and Italy are to release data on manufacturing activity. Italy and Spain are the euro zone’s third- and fourth-largest economies, respectively.
In U.S. economic news out last Friday, the Institute of Supply Management said Friday that its manufacturing purchasing managers’ index rose to 56.4 in October, the highest since April 2011, from 56.2 in September. Economists had expected the index to tick down to 55.0.
That data increased speculation the Federal Reserve could move to pare its own easing program soon than some would like to see, in turn pressuring the euro.
Elsewhere, EUR/GBP fell 0.06% to 0.8468 while EUR/JPY inched down 0.02% to 133.15. Markets in Japan are closed Monday for a holiday.