Investig.com - The euro pushed higher against the dollar on Monday, recovering from the more than two month lows struck late last week, but gains looked likely to remain limited amid growing expectations for fresh monetary easing by the European Central Bank next month.
EUR/USD was at 1.3709, up 0.12%, backing away from the two-and-a-half month trough of 1.3647 reached last Thursday.
The pair was likely to find support at 1.3647 and resistance at 1.3750.
The euro has weakened broadly in the past two weeks, losing more than 1% against the dollar on the back of mounting expectations that the ECB will ease monetary policy at its upcoming June meeting to safeguard the recovery in the euro zone and stop inflation from falling too low.
Recent comments by ECB officials have indicated that the bank is open to easing and is prepared to act swiftly if necessary.
The latest drop in the euro came after data on Thursday showed that the euro zone economy grew at a slower than expected rate in the first three months of the year.
The euro was trading close to three-month lows against the yen, with EUR/JPY easing 0.09% to 138.91, not far from Friday’s low of 138.76.
The yen shrugged off data on Monday showing that Japanese core machinery orders, a key indicator of capital spending, jumped 19.1% in March, compared to expectations of a 6.0% increase.
Elsewhere Monday, the dollar fell to two-month lows against the yen, with USD/JPY down 0.19% to 101.32.