Investing.com - The euro was steady close to three-week highs against the dollar in quiet trade on Monday, as Friday’s stronger-than-expected data on euro zone fourth quarter growth continued to underpin demand for the common currency.
EUR/USD hit 1.3724, the highest since January 24 and was last up 0.09% to 1.3704.
The pair was likely to find support at 1.3672, Friday’s low and resistance at 1.3750.
Data on Friday showed that the euro zone economy expanded 0.3% in the three months to December and expanded 0.5% from the same period a year earlier.
The data eased concerns that the European Central Bank could tighten monetary policy at its next meeting, after President Mario Draghi said last week the bank would wait for more information before taking any action.
Earlier Monday, Germany’s Bundesbank said the rate of economic growth in Germany is likely to gain momentum in the first quarter of this year after experiencing an upswing in the winter months.
Data on Friday showed that Germany’s gross domestic product rose 0.4% in the fourth quarter, ahead of expectations for 0.3% growth.
Also supporting the euro, ECB governing council member Ewald Nowotny said Monday the banks bond buying program is “not that relevant” anymore, because of the improved economic situation.
He also said the ECB would not cut the deposit rate without cutting the benchmark interest rate.
The dollar remained under pressure after data on Friday showing that U.S. factory output fell unexpectedly in January clouded the outlook for the economic recovery. The data prompted some investors to wonder whether the Federal Reserve will slow the pace of reductions to its asset-buying stimulus program.
Trade volumes were expected to remain thin on Monday, with U.S. markets shut for the President’s Day holiday.
Elsewhere, the euro was higher against the yen, with EUR/JPY rising 0.21% to 139.67, off session lows of 138.96.
Demand for the safe haven yen was boosted earlier after official data showed that Japan’s GDP expanded 0.3% in the final three months of 2013 and grew 1.0% on a year-over-year basis.
Market expectations had been for quarterly growth of 0.7% and an annual increase of 2.8%.
The euro backed away from more than one-year lows against the pound, with EUR/GBP climbing 0.21% to 0.8194 after falling as low as 0.8158 earlier, the weakest level since January 2013.