Investing.com - The euro was steady against the U.S. dollar in holiday-thinned trade on Monday, as markets remained jittery amig ongoing concerns over the outcome of U.S. budget talks.
EUR/USD hit 1.3194 during late Asian trade, the session high; the pair subsequently consolidated at 1.3192, easing up 0.02%.
The pair was likely to find support at 1.3144, the low of December 17 and resistance at 1.3238, the high of December 21.
Market sentiment remained under pressure as investors continued to monitor developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Doubts over whether a deal will be reached ahead of the year-end intensified late Thursday after House Speaker John Boehner pulled his so-called “Plan B” fiscal cliff option, which called for tax increases only on Americans earning USD1 million or more per year, because his Republican colleagues did not support the legislation.
The U.S. House has adjourned for the Christmas holiday, fueling speculation that policymakers will not be able to avert the fiscal cliff. Without a deal, the U.S. could fall back into recession and drag much of the world down with it.
Adding to concerns, Italian Prime Minister Mario Monti tendered his resignation after only 13 months in office, paving the way for a highly uncertain national election in February.
The euro was also steady against the pound with EUR/GBP inching 0.02% higher, to hit 0.8155.
Markets in Germany were to remain closed for Christmas Eve, while U.S. equity markets will close early at 13:30EST (18:30 GMT).
EUR/USD hit 1.3194 during late Asian trade, the session high; the pair subsequently consolidated at 1.3192, easing up 0.02%.
The pair was likely to find support at 1.3144, the low of December 17 and resistance at 1.3238, the high of December 21.
Market sentiment remained under pressure as investors continued to monitor developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Doubts over whether a deal will be reached ahead of the year-end intensified late Thursday after House Speaker John Boehner pulled his so-called “Plan B” fiscal cliff option, which called for tax increases only on Americans earning USD1 million or more per year, because his Republican colleagues did not support the legislation.
The U.S. House has adjourned for the Christmas holiday, fueling speculation that policymakers will not be able to avert the fiscal cliff. Without a deal, the U.S. could fall back into recession and drag much of the world down with it.
Adding to concerns, Italian Prime Minister Mario Monti tendered his resignation after only 13 months in office, paving the way for a highly uncertain national election in February.
The euro was also steady against the pound with EUR/GBP inching 0.02% higher, to hit 0.8155.
Markets in Germany were to remain closed for Christmas Eve, while U.S. equity markets will close early at 13:30EST (18:30 GMT).