Investing.com - The euro edged up to three-week highs against the dollar on Monday after data showed that the annual rate of inflation in the euro zone remained unchanged at 0.5% in June.
EUR/USD hit highs of 1.3663, the most since June 9 and was at 1.3653.
The pair was likely to find support at 1.3600 and resistance at 1.3670.
Eurostat said the annual rate of euro zone inflation was unchanged at 0.5% in June, marking the ninth consecutive month in which the inflation rate was below 1%. The European Central Bank targets an inflation rate of close to but just under 2.0%.
The core rate of inflation ticked up to an annualized 0.8% from 0.7% in May.
The data indicated that while euro zone inflation remains well below the ECB’s target the region is not sliding into deflation.
The ECB announced a package of measure aimed at staving off the threat of deflation on June 5, including cutting rates to record lows and imposing negative rates on lenders to encourage lending to consumers.
The dollar remained broadly weaker after data last week showing a sharper-than-expected 2.9% contraction in the U.S. economy in the first quarter underlined the view that the Federal Reserve will keep rates on hold for an extended period.
Investors were turning their attention to the U.S. nonfarm payrolls report, due to be released one day early on Thursday, for further indications on the strength of the labor market.
Elsewhere, the euro was almost unchanged against the yen, with EUR/JPY at 138.42.