Investing.com - The euro was trading close to three-week highs against the dollar on Monday after former U.S. Treasury Secretary Lawrence Summers’ bowed out of the race to become the next chairman of the Federal Reserve.
EUR/USD hit 1.3385 during U.S. morning trade, the highest since August 28; the pair subsequently consolidated at 1.3366, advancing 0.53%.
The pair was likely to find support at 1.3253, Friday’s low and resistance at 1.3400.
Risk appetite sharpened after Summers’ withdrew from the race to succeed Ben Bernanke as the head of the U.S. central bank. Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
Investors were also awaiting the outcome of the upcoming Fed policy meeting, which concludes on Wednesday.
Data released on Monday showed that the Empire State manufacturing index fell to a four-month low of 6.29 in September from a reading of 8.24 in August. Analysts had expected the index to rise to 9.2.
The soft data added to doubts over whether the Fed will start tapering its USD85 billion-a-month bond buying program this month.
A separate report showed that U.S. industrial production rose 0.4% in August, in line with expectations after remaining flat in July.
Elsewhere, the single currency was slightly higher against the pound, with EUR/GBP easing up 0.13% to 0.8384 and dipped lower against the yen, with EUR/JPY slipping 0.08% to 131.99.
European Central Bank President Mario Draghi said Monday that the economic recovery in the euro zone remains “fragile” and reiterated that interest rates will remain at current or lower levels for an “extended period”. The comments came during a speech in Berlin.
Separately, data showed that consumer price inflation in the euro zone remained steady at 1.3% on a year-over-year basis in August, unchanged from an initial estimate and in line with expectations.
EUR/USD hit 1.3385 during U.S. morning trade, the highest since August 28; the pair subsequently consolidated at 1.3366, advancing 0.53%.
The pair was likely to find support at 1.3253, Friday’s low and resistance at 1.3400.
Risk appetite sharpened after Summers’ withdrew from the race to succeed Ben Bernanke as the head of the U.S. central bank. Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
Investors were also awaiting the outcome of the upcoming Fed policy meeting, which concludes on Wednesday.
Data released on Monday showed that the Empire State manufacturing index fell to a four-month low of 6.29 in September from a reading of 8.24 in August. Analysts had expected the index to rise to 9.2.
The soft data added to doubts over whether the Fed will start tapering its USD85 billion-a-month bond buying program this month.
A separate report showed that U.S. industrial production rose 0.4% in August, in line with expectations after remaining flat in July.
Elsewhere, the single currency was slightly higher against the pound, with EUR/GBP easing up 0.13% to 0.8384 and dipped lower against the yen, with EUR/JPY slipping 0.08% to 131.99.
European Central Bank President Mario Draghi said Monday that the economic recovery in the euro zone remains “fragile” and reiterated that interest rates will remain at current or lower levels for an “extended period”. The comments came during a speech in Berlin.
Separately, data showed that consumer price inflation in the euro zone remained steady at 1.3% on a year-over-year basis in August, unchanged from an initial estimate and in line with expectations.