Investing.com - The euro pushed higher against the dollar on Monday as the dollar took a breather in the wake of a broad based rally late last week after strong U.S. jobs data bolstered expectations that the Federal Reserve will soon start reducing stimulus measures.
EUR/USD was up 0.30% to 1.3403 from Friday’s close of 1.3364 during U.S. morning trade, moving further back from Thursday’s seven week low of 1.3294.
The pair was likely to find support at 1.3316, Friday’s low and near-term resistance at 1.3437, Friday’s high.
Demand for the dollar continued to be underpinned after official data on Friday showed that the U.S. economy added 204,000 jobs in October, significantly higher than the 125,000 expected by economists.
The report came on the heels of data showing that the U.S. economy expanded by a larger-than-forecast 2.8% in the third quarter.
The upbeat data indicated that the U.S. economy shrugged off the impact of the government shutdown and raised the possibility that the Fed may start winding down its USD85 billion-a-month asset purchase program as soon as its next monthly meeting in December.
The single currency’s gains were held in check after the European Central Bank unexpectedly cut bank rates to 0.25% from 0.5% on Thursday and indicated that further rate cuts are still possible.
The euro also gained ground against the yen, with EUR/JPY up 0.46% to 133.01.
Elsewhere, the dollar moved higher the yen, with USD/JPY rising 0.18% to 99.25, re-approaching Thursday’s seven week highs of 99.40.
EUR/USD was up 0.30% to 1.3403 from Friday’s close of 1.3364 during U.S. morning trade, moving further back from Thursday’s seven week low of 1.3294.
The pair was likely to find support at 1.3316, Friday’s low and near-term resistance at 1.3437, Friday’s high.
Demand for the dollar continued to be underpinned after official data on Friday showed that the U.S. economy added 204,000 jobs in October, significantly higher than the 125,000 expected by economists.
The report came on the heels of data showing that the U.S. economy expanded by a larger-than-forecast 2.8% in the third quarter.
The upbeat data indicated that the U.S. economy shrugged off the impact of the government shutdown and raised the possibility that the Fed may start winding down its USD85 billion-a-month asset purchase program as soon as its next monthly meeting in December.
The single currency’s gains were held in check after the European Central Bank unexpectedly cut bank rates to 0.25% from 0.5% on Thursday and indicated that further rate cuts are still possible.
The euro also gained ground against the yen, with EUR/JPY up 0.46% to 133.01.
Elsewhere, the dollar moved higher the yen, with USD/JPY rising 0.18% to 99.25, re-approaching Thursday’s seven week highs of 99.40.