Investing.com - The euro fell to its lowest level in six weeks against the dollar on Monday, amid growing expectations that the European Central Bank will cut rates in order to safeguard the economic recovery in the region.
EUR/USD hit 1.3442 during late Asian trade, the lowest since September 18; the pair subsequently consolidated at 1.3487, inching down 0.03%.
The pair was likely to find support at 1.3450 and resistance at 1.3570, the high of October 15.
The euro remained under pressure after posting the largest weekly decline against the dollar in more than a year last week, following data showing that euro zone inflation fell to a four year low in October.
Data released on Thursday showed that consumer price inflation in the currency bloc slowed to 0.7% in October, the slowest pace since November 2009, from 1.1% in September.
The weak inflation data sparked concerns that the ECB could cut rates as early as its next policy meeting on Thursday.
Demand for the dollar continued to be underpinned after unexpectedly strong U.S. manufacturing data on Friday added to expectations that the Federal Reserve could start to taper its stimulus program as soon as next month.
Federal Reserve Bank of Dallas President Richard Fisher said Monday that the recent fiscal standoff in Washington counteracted the role of the Fed’s easy money policies in the economic recovery. The comments came during a speech in Sydney.
The euro was little changed against the yen, with EUR/JPY edging down 0.06% to 133.07.
Elsewhere, the dollar was steady close to six-week highs against the yen, with USD/JPY dipping 0.03% to 98.66.
EUR/USD hit 1.3442 during late Asian trade, the lowest since September 18; the pair subsequently consolidated at 1.3487, inching down 0.03%.
The pair was likely to find support at 1.3450 and resistance at 1.3570, the high of October 15.
The euro remained under pressure after posting the largest weekly decline against the dollar in more than a year last week, following data showing that euro zone inflation fell to a four year low in October.
Data released on Thursday showed that consumer price inflation in the currency bloc slowed to 0.7% in October, the slowest pace since November 2009, from 1.1% in September.
The weak inflation data sparked concerns that the ECB could cut rates as early as its next policy meeting on Thursday.
Demand for the dollar continued to be underpinned after unexpectedly strong U.S. manufacturing data on Friday added to expectations that the Federal Reserve could start to taper its stimulus program as soon as next month.
Federal Reserve Bank of Dallas President Richard Fisher said Monday that the recent fiscal standoff in Washington counteracted the role of the Fed’s easy money policies in the economic recovery. The comments came during a speech in Sydney.
The euro was little changed against the yen, with EUR/JPY edging down 0.06% to 133.07.
Elsewhere, the dollar was steady close to six-week highs against the yen, with USD/JPY dipping 0.03% to 98.66.