Investing.com - The euro remained lower against the U.S. dollar on Monday, as Japan's intervention in the foreign exchange market to rein in the strong yen continued to support demand for the greenback.
EUR/USD hit 1.3970 during U.S. morning trade, the pair's lowest since October 27; the pair subsequently consolidated at 1.3996, tumbling 1.08%.
The pair was likely to find support at 1.3863, the low of October 27 and resistance at 1.4246, the high of October 27.
Japanese officials launched an intervention to curb the appreciation of the yen earlier Monday, sending the dollar broadly higher.
Japan’s Vice Finance Minister Fumihiko Igarashi said that the intervention was not targeting specific currency levels and added that it was too early to assess the impact of the action, which may not yet have ended.
Meanwhile, the single currency remained under pressure as investors feared that, after reaching an agreement last week, European leaders' plans to bolster the region's lenders could fail.
Investors were also concerned that policymakers would struggle to finance the planned enhancement of the euro zone's bailout fund.
Also Monday, official data showed that the annual rate of inflation in the euro zone was unchanged at its highest level in three years in October, while the number of people without jobs in the region hit a new record in September.
Elsewhere, the euro was sharply lower against the pound with EUR/GBP shedding 0.69%, to hit 0.8713.
Earlier in the day, a report showed that manufacturing activity in the Chicago area fell more-than-expected in October.
In a report, market research group Kingsbury International said its Chicago purchasing managers’ index fell to 58.4 in October from 60.4 in September. Analysts had expected the index to decline to 59.0 in October.
EUR/USD hit 1.3970 during U.S. morning trade, the pair's lowest since October 27; the pair subsequently consolidated at 1.3996, tumbling 1.08%.
The pair was likely to find support at 1.3863, the low of October 27 and resistance at 1.4246, the high of October 27.
Japanese officials launched an intervention to curb the appreciation of the yen earlier Monday, sending the dollar broadly higher.
Japan’s Vice Finance Minister Fumihiko Igarashi said that the intervention was not targeting specific currency levels and added that it was too early to assess the impact of the action, which may not yet have ended.
Meanwhile, the single currency remained under pressure as investors feared that, after reaching an agreement last week, European leaders' plans to bolster the region's lenders could fail.
Investors were also concerned that policymakers would struggle to finance the planned enhancement of the euro zone's bailout fund.
Also Monday, official data showed that the annual rate of inflation in the euro zone was unchanged at its highest level in three years in October, while the number of people without jobs in the region hit a new record in September.
Elsewhere, the euro was sharply lower against the pound with EUR/GBP shedding 0.69%, to hit 0.8713.
Earlier in the day, a report showed that manufacturing activity in the Chicago area fell more-than-expected in October.
In a report, market research group Kingsbury International said its Chicago purchasing managers’ index fell to 58.4 in October from 60.4 in September. Analysts had expected the index to decline to 59.0 in October.