Investing.com – The euro erased gains against the U.S. dollar on Monday, pulling back from a session high in volatile trade as speculation continued over additional easing measures by the European Central Bank.
EUR/USD retreated from 1.3551, the daily high, to hit 1.3444 during U.S. morning trade, shedding 0.40%.
The pair was likely to find support at 1.3361, the days low and an eight-month low and resistance at 1.3566, last Friday’s high.
The euro found support earlier amid speculation that the ECB may cut rates to help the euro zone economy after a senior bank policymaker said that a reduction in interest rates could not be ruled out.
A smaller-than-expected decline in the Ifo index of German business confidence for September also helped market sentiment.
But the single currency remained under pressure ahead of votes on expanding the role of the euro zone's bailout fund later in the week. The measures have to be passed by all of the currency bloc's governments before steps to expand its role can be implemented.
Meanwhile, officials from the International Monetary Fund were due to return to Athens later in the week to determine whether Greece is eligable to receive the next tranche of its bailout funds.
The euro was also down against the pound, with EUR/GBP tumbling 0.82% to hit 0.8664.
Also Monday, official data showed that U.S. new home sales fell 2.3% in August, to hit a six-month low.
The Commerce Department said that new home sales fell to a seasonally adjusted annual rate of 295K in August, from an upwardly revised 302K in July. Analysts had expected new home sales to fall to 293K last month.
EUR/USD retreated from 1.3551, the daily high, to hit 1.3444 during U.S. morning trade, shedding 0.40%.
The pair was likely to find support at 1.3361, the days low and an eight-month low and resistance at 1.3566, last Friday’s high.
The euro found support earlier amid speculation that the ECB may cut rates to help the euro zone economy after a senior bank policymaker said that a reduction in interest rates could not be ruled out.
A smaller-than-expected decline in the Ifo index of German business confidence for September also helped market sentiment.
But the single currency remained under pressure ahead of votes on expanding the role of the euro zone's bailout fund later in the week. The measures have to be passed by all of the currency bloc's governments before steps to expand its role can be implemented.
Meanwhile, officials from the International Monetary Fund were due to return to Athens later in the week to determine whether Greece is eligable to receive the next tranche of its bailout funds.
The euro was also down against the pound, with EUR/GBP tumbling 0.82% to hit 0.8664.
Also Monday, official data showed that U.S. new home sales fell 2.3% in August, to hit a six-month low.
The Commerce Department said that new home sales fell to a seasonally adjusted annual rate of 295K in August, from an upwardly revised 302K in July. Analysts had expected new home sales to fall to 293K last month.