Investing.com - The euro was lower against the U.S. dollar on Monday, pulling back from Friday’s two-week high but news that the International Monetary Fund has increased resources to help contain the debt crisis in the euro zone lent some support.
EUR/USD hit 1.3210 during late Asian trade, the session high; the pair subsequently consolidated at 1.3182, shedding 0.26%.
The pair was likely to find support at 1.3128, Friday’s low and resistance at 1.3226, Friday’s high and the pair’s highest since April 4.
The euro came under pressure amid uncertainty over the result of France’s presidential election, after President Sarkozy preformed poorly against challenger Francois Hollande in the first round of the vote.
Hollande has said he wants to renegotiate the euro zone fiscal pact in order to stimulate growth in the euro zone, rather than enforcing strict austerity measures.
The euro strengthened broadly on Friday after the Group of 20 leading economies agreed to boost the IMF's lending capacity by USD430 billion, to help shield the global economy from the debt crisis roiling the euro zone.
However, concerns remained over whether the new IMF firewall will be enough to ease investor concerns over the crisis, after the U.S. did not contribute to the increase.
The euro was also lower against the pound and the yen, with EUR/GBP shedding 0.21% to hover just above a 19-month low at 0.8180 and EUR/JPY losing 0.61% to hit 107.11.
Later Monday, the euro zone was to publish preliminary reports on manufacturing and services sector growth, while France and Germany were to produce individual data.
EUR/USD hit 1.3210 during late Asian trade, the session high; the pair subsequently consolidated at 1.3182, shedding 0.26%.
The pair was likely to find support at 1.3128, Friday’s low and resistance at 1.3226, Friday’s high and the pair’s highest since April 4.
The euro came under pressure amid uncertainty over the result of France’s presidential election, after President Sarkozy preformed poorly against challenger Francois Hollande in the first round of the vote.
Hollande has said he wants to renegotiate the euro zone fiscal pact in order to stimulate growth in the euro zone, rather than enforcing strict austerity measures.
The euro strengthened broadly on Friday after the Group of 20 leading economies agreed to boost the IMF's lending capacity by USD430 billion, to help shield the global economy from the debt crisis roiling the euro zone.
However, concerns remained over whether the new IMF firewall will be enough to ease investor concerns over the crisis, after the U.S. did not contribute to the increase.
The euro was also lower against the pound and the yen, with EUR/GBP shedding 0.21% to hover just above a 19-month low at 0.8180 and EUR/JPY losing 0.61% to hit 107.11.
Later Monday, the euro zone was to publish preliminary reports on manufacturing and services sector growth, while France and Germany were to produce individual data.