Investing.com - The euro recovered from one-and-a-half month lows against the dollar on Monday but gains looked likely to remain limited amid mounting expectations for a rate cut from the European Central Bank.
EUR/USD pulled back from 1.3442, the lowest since September 18, to hit 1.3511 during U.S. morning trade, rising 0.14%.
The pair was likely to find support at 1.3441, the session low and resistance at 1.3570, the high of October 15.
The euro found support after data released on Monday showed that euro zone manufacturing activity edged higher in October.
The euro zone manufacturing purchasing managers’ index ticked up to 51.3 in October from a final reading of 51.1 in September, unchanged from a preliminary estimate.
Germany’s manufacturing PMI rose to 51.7 last month from 51.1 in September as new orders and production levels rose.
The euro looked likely to remain under pressure in the run-up the ECB’s monthly meeting on Thursday after data last week showing that euro zone inflation fell to a four year low in October sparked concerns that the bank may cut rates in order to safeguard the fragile economic recovery.
Demand for the dollar continued to be underpinned after unexpectedly strong U.S. manufacturing data on Friday added to expectations that the Federal Reserve could start to taper its stimulus program as soon as next month.
The dollar showed little reaction after a report on Monday showed that U.S. factory orders rose 1.7% from a month earlier in September, in line with expectations.
Elsewhere, the euro was slightly higher against the yen, with EUR/JPY edging up 0.09% to 133.28.
The shared currency inched lower against the pound, with EUR/GBP dipping 0.06% to 0.8466.
Sterling remained supported after data on Monday showed that activity in the U.K. construction sector expanded at the fastest rate in six years in October.
EUR/USD pulled back from 1.3442, the lowest since September 18, to hit 1.3511 during U.S. morning trade, rising 0.14%.
The pair was likely to find support at 1.3441, the session low and resistance at 1.3570, the high of October 15.
The euro found support after data released on Monday showed that euro zone manufacturing activity edged higher in October.
The euro zone manufacturing purchasing managers’ index ticked up to 51.3 in October from a final reading of 51.1 in September, unchanged from a preliminary estimate.
Germany’s manufacturing PMI rose to 51.7 last month from 51.1 in September as new orders and production levels rose.
The euro looked likely to remain under pressure in the run-up the ECB’s monthly meeting on Thursday after data last week showing that euro zone inflation fell to a four year low in October sparked concerns that the bank may cut rates in order to safeguard the fragile economic recovery.
Demand for the dollar continued to be underpinned after unexpectedly strong U.S. manufacturing data on Friday added to expectations that the Federal Reserve could start to taper its stimulus program as soon as next month.
The dollar showed little reaction after a report on Monday showed that U.S. factory orders rose 1.7% from a month earlier in September, in line with expectations.
Elsewhere, the euro was slightly higher against the yen, with EUR/JPY edging up 0.09% to 133.28.
The shared currency inched lower against the pound, with EUR/GBP dipping 0.06% to 0.8466.
Sterling remained supported after data on Monday showed that activity in the U.K. construction sector expanded at the fastest rate in six years in October.