Investing.com - The euro was hovering just below an almost one-month high against the U.S. dollar on Monday, as Friday’s weaker-than-expected U.S. first-quarter growth data continued to weigh on the greenback.
EUR/USD hit 1.3264 during late Asian trade, the session high; the pair subsequently consolidated at 1.3254, inching up 0.02%.
The pair was likely to find support at 1.3156, Friday’s low and resistance at 1.3366, the high of April 3.
The Commerce Department said gross domestic product in the U.S. expanded at a rate of 2.2% in the three months to March, below expectations for a 2.5% increase.
The disappointing data fuelled speculation that the Federal Reserve may implement a fresh round of monetary stimulus measures after Fed chief Ben Bernanke left open the possibility following the bank’s monetary policy meeting last week, saying policymakers were “prepared to do more” if necessary.
But the euro’s gains were limited amid lingering concerns over ongoing political instability in the bloc and high borrowing costs among peripheral nations, particularly Spain.
Standard & Poor’s cut Spain’s long-term credit rating to BBB+ from A and gave it a negative outlook on Thursday, saying that the recession will undermine government efforts to reduce one of the largest budget deficits in the single currency bloc.
The euro dipped against the pound and the yen, with EUR/GBP slipping 0.07% to hit 0.8142 and EUR/JPY losing 0.13% to hit 106.23.
Later in the day, the euro zone was to release preliminary data on consumer price inflation.
The U.S. was to publish official data on core personal consumption expenditures price inflation and personal spending, as well as a report on business activity in Chicago.
EUR/USD hit 1.3264 during late Asian trade, the session high; the pair subsequently consolidated at 1.3254, inching up 0.02%.
The pair was likely to find support at 1.3156, Friday’s low and resistance at 1.3366, the high of April 3.
The Commerce Department said gross domestic product in the U.S. expanded at a rate of 2.2% in the three months to March, below expectations for a 2.5% increase.
The disappointing data fuelled speculation that the Federal Reserve may implement a fresh round of monetary stimulus measures after Fed chief Ben Bernanke left open the possibility following the bank’s monetary policy meeting last week, saying policymakers were “prepared to do more” if necessary.
But the euro’s gains were limited amid lingering concerns over ongoing political instability in the bloc and high borrowing costs among peripheral nations, particularly Spain.
Standard & Poor’s cut Spain’s long-term credit rating to BBB+ from A and gave it a negative outlook on Thursday, saying that the recession will undermine government efforts to reduce one of the largest budget deficits in the single currency bloc.
The euro dipped against the pound and the yen, with EUR/GBP slipping 0.07% to hit 0.8142 and EUR/JPY losing 0.13% to hit 106.23.
Later in the day, the euro zone was to release preliminary data on consumer price inflation.
The U.S. was to publish official data on core personal consumption expenditures price inflation and personal spending, as well as a report on business activity in Chicago.