Investing.com - The euro remained higher against the dollar on Monday, trading near two month highs, as investors awaited the outcome of Wednesday’s keenly anticipated Federal Reserve policy meeting.
EUR/USD hit session highs of 1.3798, and was last up 0.30% to 1.3782, near the two month peak of 1.3809 struck last Wednesday.
The pair was likely to find support at 1.3726, the session low and near-term resistance at 1.3809.
The euro was boosted after data on Monday showed that the euro zone’s composite output index rose to a three month high of 52.1 in December, from 51.7 in November.
It was the fastest increase since April 2011, indicating that European Central Bank policymakers will not need to step up stimulus measures.
New orders picked up to the highest level since mid-2011, fuelling optimism that the recovery in the region will carry forward into the start of 2014.
Rising exports helped push the euro zone’s manufacturing purchasing managers’ index up to a 31 month high of 52.7 in December, from a final reading of 51.6 in November.
However, the rate of expansion in the service sector ticked down to a four month low as domestic demand remained weak.
Private sector output in the euro zone’s largest economy continued to expand steadily in December, with Germany’s manufacturing PMI rising to a 30-month high, but the rate of decline in France accelerated, raising concerns that the country could fall back into a recession.
A separate report showed that the euro zone’s trade surplus rose to EUR17.2 billion in in October from EUR9.6 billion in October 2012 and was up from EUR10.9 billion in September.
Imports fell by 1.2% in October from a month earlier, while exports rose 0.2%.
Investors remained cautious ahead of the Fed meeting with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
Markets were turning their attention to U.S. inflation data due out on Tuesday amid concerns that the subdued inflation outlook could prompt the Fed to keep its stimulus program in place for longer.
Elsewhere, the euro was steady near five year highs against the yen, with EUR/JPY dipping 0.01% to 141.77, holding below Friday’s peaks of 142.81.
EUR/USD hit session highs of 1.3798, and was last up 0.30% to 1.3782, near the two month peak of 1.3809 struck last Wednesday.
The pair was likely to find support at 1.3726, the session low and near-term resistance at 1.3809.
The euro was boosted after data on Monday showed that the euro zone’s composite output index rose to a three month high of 52.1 in December, from 51.7 in November.
It was the fastest increase since April 2011, indicating that European Central Bank policymakers will not need to step up stimulus measures.
New orders picked up to the highest level since mid-2011, fuelling optimism that the recovery in the region will carry forward into the start of 2014.
Rising exports helped push the euro zone’s manufacturing purchasing managers’ index up to a 31 month high of 52.7 in December, from a final reading of 51.6 in November.
However, the rate of expansion in the service sector ticked down to a four month low as domestic demand remained weak.
Private sector output in the euro zone’s largest economy continued to expand steadily in December, with Germany’s manufacturing PMI rising to a 30-month high, but the rate of decline in France accelerated, raising concerns that the country could fall back into a recession.
A separate report showed that the euro zone’s trade surplus rose to EUR17.2 billion in in October from EUR9.6 billion in October 2012 and was up from EUR10.9 billion in September.
Imports fell by 1.2% in October from a month earlier, while exports rose 0.2%.
Investors remained cautious ahead of the Fed meeting with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
Markets were turning their attention to U.S. inflation data due out on Tuesday amid concerns that the subdued inflation outlook could prompt the Fed to keep its stimulus program in place for longer.
Elsewhere, the euro was steady near five year highs against the yen, with EUR/JPY dipping 0.01% to 141.77, holding below Friday’s peaks of 142.81.