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Forex - EUR/USD remains near 11-month lows in quiet trade

Published 08/25/2014, 08:06 AM
Euro holds near 11-month lows vs. dollar as Draghi comments weigh
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Investing.com - The euro remained near 11-month lows against the U.S. dollar in quiet trade on Monday, after the release of downbeat German business climate data and as comments by European Central Bank President Mario Draghi continued to weigh.

EUR/USD hit 1.3184 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3199, shedding 0.31%.

The pair was likely to find support at 1.3105 and resistance at 1.3297, the high of August 22.

Earlier Monday, the German research institute Ifo said its Business Climate Index fell to a more than one-year low of 106.3 this month, below forecasts for 107.0 and down from a reading of 108.0 in July.

The weak data dampened optimism over the health of the euro zone’s largest economy.

The single currency had weakened earlier, after ECB President Mario Draghi said on Friday that the central bank is ready to take more unconventional action if needed to stimulate a sluggish euro zone economy.

Mr. Draghi was speaking at the Fed's annual meeting of top central bankers and economists in Jackson Hole, Wyoming.

Federal Reserve Chair Janet Yellen said at the Jackson Hole gathering that the U.S. economy is recovering and added the labor market is improving as well.

The comments highlighted the view that the paths of euro zone and U.S. monetary policies are diverging.

The euro was also lower against the pound, with EUR/GBP declining 0.44% to 0.7957.

Later in the day, the U.S. was to release data on new home sales.

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