Investing.com - The euro touched a one-year low against the dollar on Monday as concerns over the crisis in Ukraine and weak German second quarter growth data pressured the single currency lower.
EUR/USD hit lows of 1.3119, the weakest level since September 6 2013 and was last trading at 1.3127.
The pair was likely to find support at around the 1.31 level and resistance at 1.3195, Friday’s high.
Investors were continuing to monitor the situation in Ukraine ahead of negotiations due to take place later in the day between Ukrainian and Russian officials and pro-Russian separatists after talks last week resulted in no major breakthrough.
Concerns that sanctions against Russia would act as a drag on growth in the euro zone have weighed on the single currency in recent weeks.
Meanwhile, data on Monday confirmed that Germany’s economy contracted by 0.2% in the second quarter, in line with forecasts and unchanged from a preliminary estimate.
Slowing growth in Germany looked likely to add to pressure on the European Central Bank to implement fresh measures to shore up the faltering recovery in the euro area, ahead of its upcoming monetary policy meeting on Thursday.
The euro was hovering close to twenty month lows against the Swiss franc, with EUR/CHF at 1.2063, not far from last Thursday’s trough of 1.2048.
In a newspaper interview published on Sunday, Swiss National Bank President Thomas Jordan pledged to enforce the minimum 1.20 per euro exchange rate floor imposed by the bank three years ago in order to stave off the threat of deflation and recession.
The euro was little changed against the yen, with EUR/JPY at 136.70.
Elsewhere Monday, the dollar was steady against the yen, with USD/JPY at 104.11, not far from one week highs of 104.20.
Trade volumes looked likely to remain light on Monday, with markets in the U.S. closed for the Labor Day holiday.