Investing.com - The euro was higher against the softer dollar on Monday as investors looked ahead to this week’s Federal Reserve minutes amid ongoing uncertainty over when the bank will start to pull back stimulus measures.
EUR/USD hit 1.3375 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3353, gaining 0.21%.
The pair was likely to find support at 1.3310, Friday’s low and resistance at 1.3389, the high of August 9.
The euro hit session highs after Germany’s central bank said the European Central Bank’s forward guidance on interest rates was not an "unconditional commitment".
In its monthly report, Germany’s Bundesbank said that Germany and other euro zone member states would benefit from record low interest rates set by the ECB.
However, the report added that the ECB’s pledge to keep bank rates at low levels for an extended period would continue to depend on the medium term inflation outlook.
The Bundesbank also said it expects German economic growth to return to "normal and steady" rates in the second half of the year, after data last week showed that the economy expanded by a larger-than-forecast 0.7% in the second quarter.
Investors were looking ahead to the minutes of the Fed’s July meeting, due out on Wednesday, for further indications as to when the bank may start to phase out its USD85 billion-a-month asset purchase program.
Expectations that the Fed may begin tapering as soon as September were boosted late last week after data showed that U.S. weekly jobless claims fell to an almost six year low.
The euro was almost unchanged against the pound, with EUR/GBP dipping 0.01% to 0.8529 and was trading close to session highs against the yen, with EUR/JPY climbing 0.62% to 130.89.
Japan posted a larger-than-expected trade deficit of JPY1.024 trillion in July, official data on Monday showed. Exports rose 12.2% on a year-over-year basis, boosted by the weaker yen, while imports climbed 19.6%.
EUR/USD hit 1.3375 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3353, gaining 0.21%.
The pair was likely to find support at 1.3310, Friday’s low and resistance at 1.3389, the high of August 9.
The euro hit session highs after Germany’s central bank said the European Central Bank’s forward guidance on interest rates was not an "unconditional commitment".
In its monthly report, Germany’s Bundesbank said that Germany and other euro zone member states would benefit from record low interest rates set by the ECB.
However, the report added that the ECB’s pledge to keep bank rates at low levels for an extended period would continue to depend on the medium term inflation outlook.
The Bundesbank also said it expects German economic growth to return to "normal and steady" rates in the second half of the year, after data last week showed that the economy expanded by a larger-than-forecast 0.7% in the second quarter.
Investors were looking ahead to the minutes of the Fed’s July meeting, due out on Wednesday, for further indications as to when the bank may start to phase out its USD85 billion-a-month asset purchase program.
Expectations that the Fed may begin tapering as soon as September were boosted late last week after data showed that U.S. weekly jobless claims fell to an almost six year low.
The euro was almost unchanged against the pound, with EUR/GBP dipping 0.01% to 0.8529 and was trading close to session highs against the yen, with EUR/JPY climbing 0.62% to 130.89.
Japan posted a larger-than-expected trade deficit of JPY1.024 trillion in July, official data on Monday showed. Exports rose 12.2% on a year-over-year basis, boosted by the weaker yen, while imports climbed 19.6%.