Investing.com – The euro was trading close to a five-month peak against the U.S. dollar on Monday, supported by the view that the European Central Bank will almost certainly raise interest rates later this week.
EUR/USD hit 1.4268 during late Asian trade, the pair’s highest since November 4; the pair subsequently consolidated at 1.4235, easing up 0.01%.
The pair was likely to find support at 1.4114, last Thursday’s low and short-term resistance at 1.4281, the high of November 4.
The single currency has rallied this year amid expectations that the Federal Reserve will lag the ECB in raising interest rates.
On Friday, a senior Federal Reserve official dismissed the idea that the central bank would soon consider raising interest rates, saying he saw no need for the central bank to tighten policy.
William Dudley, president of the New York Federal Reserve Bank, said the Fed was "still very far away" from achieving its mandate of maximum sustainable employment and price stability, even though the economy was on a firmer footing.
Meanwhile, the euro was lower against the pound, with EUR/GBP sliding 0.28% to hit 0.8810.
Later Monday, the Chairman of the Fed, Ben Bernanke was to speak.
EUR/USD hit 1.4268 during late Asian trade, the pair’s highest since November 4; the pair subsequently consolidated at 1.4235, easing up 0.01%.
The pair was likely to find support at 1.4114, last Thursday’s low and short-term resistance at 1.4281, the high of November 4.
The single currency has rallied this year amid expectations that the Federal Reserve will lag the ECB in raising interest rates.
On Friday, a senior Federal Reserve official dismissed the idea that the central bank would soon consider raising interest rates, saying he saw no need for the central bank to tighten policy.
William Dudley, president of the New York Federal Reserve Bank, said the Fed was "still very far away" from achieving its mandate of maximum sustainable employment and price stability, even though the economy was on a firmer footing.
Meanwhile, the euro was lower against the pound, with EUR/GBP sliding 0.28% to hit 0.8810.
Later Monday, the Chairman of the Fed, Ben Bernanke was to speak.