Investing.com - The euro was higher against the dollar on Monday, as concerns over the U.S. government shutdown and the looming threat of a U.S. default weighed on the market sentiment.
EUR/USD hit 1.3592 during European afternoon trade, the session high; the pair subsequently consolidated at 1.3570, gaining 0.12%.
The pair was likely to find support at 1.3503, the low of October 3 and resistance at 1.3631, Friday’s high and an almost eight month high.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the government borrowing limit unless Democrats agree to talks aimed at reducing the deficit.
The comments fuelled fears that the political deadlock in Washington will not be resolved by October 17, the date which the Treasury Department has estimated the U.S. could risk an unprecedented default.
Meanwhile, delays in U.S. economic data releases fuelled expectations that the Federal Reserve will hold off on any move to scale back its stimulus program.
In the euro zone, data released on Monday showed that the economy grew by 0.3% in the second quarter, unchanged from a preliminary estimate and in line with forecasts.
A separate report showed that the Sentix index of euro zone investor confidence dropped to 6.1, from 6.5 in September as concerns over the political impasse in the U.S. hurt sentiment. Analysts had expected the index to rise to 10.6 this month.
Elsewhere, the euro was lower against the pound and the yen, with EUR/GBP down 0.30% to 0.8440 and EUR/JPY sliding 0.49% to 131.44.
EUR/USD hit 1.3592 during European afternoon trade, the session high; the pair subsequently consolidated at 1.3570, gaining 0.12%.
The pair was likely to find support at 1.3503, the low of October 3 and resistance at 1.3631, Friday’s high and an almost eight month high.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the government borrowing limit unless Democrats agree to talks aimed at reducing the deficit.
The comments fuelled fears that the political deadlock in Washington will not be resolved by October 17, the date which the Treasury Department has estimated the U.S. could risk an unprecedented default.
Meanwhile, delays in U.S. economic data releases fuelled expectations that the Federal Reserve will hold off on any move to scale back its stimulus program.
In the euro zone, data released on Monday showed that the economy grew by 0.3% in the second quarter, unchanged from a preliminary estimate and in line with forecasts.
A separate report showed that the Sentix index of euro zone investor confidence dropped to 6.1, from 6.5 in September as concerns over the political impasse in the U.S. hurt sentiment. Analysts had expected the index to rise to 10.6 this month.
Elsewhere, the euro was lower against the pound and the yen, with EUR/GBP down 0.30% to 0.8440 and EUR/JPY sliding 0.49% to 131.44.