Investing.com - The euro briefly rose to session highs against the dollar on Monday but gains were held in check as concerns over a looming U.S. government shutdown weighed on market sentiment.
EUR/USD hit 1.3556 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3522, just 0.01% higher for the day.
The pair was likely to find support at 1.3460, the low of September 25 and resistance at 1.3567, the high of September 19 and an eight-month high.
The euro found support following reports that Silvio Berlusconi was facing dissent within his political party after he announced Saturday that he was pulling his ministers out of Italian Prime Minister Enrico Letta’s coalition government and calling for fresh elections.
Prime Minister Letta is going before parliament for a vote of confidence on Wednesday and will need to secure a majority to remain on in government.
Investors remained cautious amid concerns over the prospect of the U.S. government shutting down, as political wrangling in Washington over funding for President Barack Obama’s healthcare law continued.
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.
Elsewhere, the euro was almost unchanged against the pound, with EUR/GBP dipping 0.04% to 0.8374 and remained lower against the yen, with EUR/JPY down 0.36% to 132.35 after falling to session lows of 131.65.
Also Monday, data 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.
EUR/USD hit 1.3556 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3522, just 0.01% higher for the day.
The pair was likely to find support at 1.3460, the low of September 25 and resistance at 1.3567, the high of September 19 and an eight-month high.
The euro found support following reports that Silvio Berlusconi was facing dissent within his political party after he announced Saturday that he was pulling his ministers out of Italian Prime Minister Enrico Letta’s coalition government and calling for fresh elections.
Prime Minister Letta is going before parliament for a vote of confidence on Wednesday and will need to secure a majority to remain on in government.
Investors remained cautious amid concerns over the prospect of the U.S. government shutting down, as political wrangling in Washington over funding for President Barack Obama’s healthcare law continued.
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.
Elsewhere, the euro was almost unchanged against the pound, with EUR/GBP dipping 0.04% to 0.8374 and remained lower against the yen, with EUR/JPY down 0.36% to 132.35 after falling to session lows of 131.65.
Also Monday, data 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.