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Forex - Euro eases off 15-month high as dollar steadies

Published 04/11/2011, 02:39 AM
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EUR/GBP
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Investing.com – The euro eased off a 15-month high against the U.S. dollar on Monday, as investors sold the currency to lock in profits after Friday’s rally.

EUR/USD hit 1.4441 during late Asian trade, the daily low; the pair subsequently consolidated at 1.4449, slipping 0.23%.

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 greenback also found support after congressional leaders and the White House on Friday reached an agreement to keep the federal government running and avoid the first shutdown in 15 years.

The euro rallied after Thursday’s decision by the European Central Bank to increase its key interest rate for the first time since July 2008 to 1.25% from 1%.

The ECB’s decision to raise its benchmark rate is in contrast to that of the Federal Reserve, which is not expected to raise its federal funds rate until the first quarter of 2012.

Meanwhile, the euro was fractionally higher against the pound, with EUR/GBP edging up 0.02% to hit 0.8841.

Later in the day, in the euro zone, France and Italy were to release official data on industrial production.


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