Investing.com – The euro slipped from a 15-month high against the U.S. dollar on Monday, but remained well supported by expectations for further euro zone interest rate increases this year after the European Central Bank hiked rates last week.
EUR/USD hit 1.4421 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.4451, shedding 0.22%.
The pair was likely to find support at 1.4290, Friday’s low and short-term resistance at 1.4577, the high of January 13, 2010.
The euro has rallied against the dollar this year as improving economic growth in Germany and accelerating inflation, which reached a two-year high in March, boosted speculation that interest rates would be lifted.
On Thursday, the ECB increased its key interest rate for the first time since July 2008 to 1.25% from 1% and left the door open for further rate increases.
The euro was also lower against the pound, with EUR/GBP sliding 0.21% to hit 0.8819.
Also Monday, New York Federal Reserve Bank President William Dudley said the U.S. central bank should not be too enthusiastic about tightening monetary policy soon as there is still significant slack in the economy.
EUR/USD hit 1.4421 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.4451, shedding 0.22%.
The pair was likely to find support at 1.4290, Friday’s low and short-term resistance at 1.4577, the high of January 13, 2010.
The euro has rallied against the dollar this year as improving economic growth in Germany and accelerating inflation, which reached a two-year high in March, boosted speculation that interest rates would be lifted.
On Thursday, the ECB increased its key interest rate for the first time since July 2008 to 1.25% from 1% and left the door open for further rate increases.
The euro was also lower against the pound, with EUR/GBP sliding 0.21% to hit 0.8819.
Also Monday, New York Federal Reserve Bank President William Dudley said the U.S. central bank should not be too enthusiastic about tightening monetary policy soon as there is still significant slack in the economy.