Investing.com - The euro edged back towards recent eight-month highs against the dollar on Monday, following a win for German Chancellor Angela Merkel in weekend general elections.
EUR/USD hit 1.3547 during late Asian trade, the session high; the pair subsequently consolidated at 1.3540, gaining 0.13%.
The pair was likely to find support at 1.3500 and near-term resistance at 1.3567, Thursday’s high and the highest since early February.
The euro was boosted after Chancellor Merkel's conservative party won Germany’s elections on Sunday, securing her a historic third term in office. Political party leaders were due to meet later Monday to discuss coalition talks.
Market sentiment was also boosted after data released on Monday showed that the preliminary reading of China’s HSBC manufacturing purchasing managers’ index rose to a six-month high of 51.2 in September, up from 50.1 in August. Economists had forecast a reading of 50.9.
The dollar remained under pressure after the Federal Reserve’s surprise decision last week to announce no reduction to its USD85 billion-a-month stimulus program.
The greenback found some support after St. Louis Federal Reserve President James Bullard said Friday the decision not to taper in September was “close” and indicated that there could be a small reduction in bond purchases in October.
The euro edged lower against the pound, with EUR/GBP dipping 0.05% to 0.8444 and slipped against the yen, with EUR/JPY down 0.24% to 134.02.
The euro zone was to release preliminary data on manufacturing and service sector activity later Monday. Meanwhile, European Central Bank President Mario Draghi was to testify about the economy before the Committee on Economic and Monetary Affairs, in Brussels.
EUR/USD hit 1.3547 during late Asian trade, the session high; the pair subsequently consolidated at 1.3540, gaining 0.13%.
The pair was likely to find support at 1.3500 and near-term resistance at 1.3567, Thursday’s high and the highest since early February.
The euro was boosted after Chancellor Merkel's conservative party won Germany’s elections on Sunday, securing her a historic third term in office. Political party leaders were due to meet later Monday to discuss coalition talks.
Market sentiment was also boosted after data released on Monday showed that the preliminary reading of China’s HSBC manufacturing purchasing managers’ index rose to a six-month high of 51.2 in September, up from 50.1 in August. Economists had forecast a reading of 50.9.
The dollar remained under pressure after the Federal Reserve’s surprise decision last week to announce no reduction to its USD85 billion-a-month stimulus program.
The greenback found some support after St. Louis Federal Reserve President James Bullard said Friday the decision not to taper in September was “close” and indicated that there could be a small reduction in bond purchases in October.
The euro edged lower against the pound, with EUR/GBP dipping 0.05% to 0.8444 and slipped against the yen, with EUR/JPY down 0.24% to 134.02.
The euro zone was to release preliminary data on manufacturing and service sector activity later Monday. Meanwhile, European Central Bank President Mario Draghi was to testify about the economy before the Committee on Economic and Monetary Affairs, in Brussels.