Investing.com - The euro rose to session highs against the dollar on Monday as concerns over the possibility of a U.S. default weighed on the dollar, after politicians in Washington failed to reach an agreement on raising the debt ceiling over the weekend.
EUR/USD hit 1.3598 during U.S. morning trade, the highest since October 10; the pair subsequently consolidated at 1.3586, gaining 0.35%.
The pair was likely to find support at 1.3517, Friday’s low and resistance at 1.3631, the high of October 4.
Negotiations between the White House and House Republicans broke down over the weekend, after President Barack Obama rejected Republican proposals for a short-term debt ceiling increase.
If a deal to raise the government borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
World finance ministers and central bank heads in Washington for the annual meeting of the International Monetary Fund and World Bank over the weekend called for “urgent action” to break the deadlock, warning of the negative impact on the global economic recovery.
In the euro zone, data on Monday showed that industrial production rose 1% in August, coming in above expectations for a 0.8% increase.
Elsewhere, the euro was little changed against the pound and the yen, with EUR/GBP inching up 0.01% to 0.8490 and EUR/JPY dipping 0.04% to 133.38.
EUR/USD hit 1.3598 during U.S. morning trade, the highest since October 10; the pair subsequently consolidated at 1.3586, gaining 0.35%.
The pair was likely to find support at 1.3517, Friday’s low and resistance at 1.3631, the high of October 4.
Negotiations between the White House and House Republicans broke down over the weekend, after President Barack Obama rejected Republican proposals for a short-term debt ceiling increase.
If a deal to raise the government borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
World finance ministers and central bank heads in Washington for the annual meeting of the International Monetary Fund and World Bank over the weekend called for “urgent action” to break the deadlock, warning of the negative impact on the global economic recovery.
In the euro zone, data on Monday showed that industrial production rose 1% in August, coming in above expectations for a 0.8% increase.
Elsewhere, the euro was little changed against the pound and the yen, with EUR/GBP inching up 0.01% to 0.8490 and EUR/JPY dipping 0.04% to 133.38.