Investing.com – The euro held gains against the U.S. dollar on Monday, trading close to an 18-day high after a flurry of data painted a mixed picture of the U.S. economic recovery.
EUR/USD hit 1.3855 during European late afternoon trade; the pair’s highest since February 2; the pair subsequently consolidated at 1.3832, gaining 0.58%.
The pair was likely to find support at 1.3646, last Wednesday’s low and short-term resistance at 1.3860, the high of February 2 and a three-month high.
Earlier in the day, the Commerce Department said consumer spending increased less-than-expected in January, rising 0.2% after increasing by a revised 0.5% the previous month. The slowdown in spending came even while personal income rose by 1.0%, the largest gain since May 2009.
A separate report showed that manufacturing activity in the Chicago area rose unexpectedly in February.
Market research group Kingsbury International said its Chicago purchasing managers’ index rose to a seasonally adjusted 71.2 in February, up from 68.8 in January. Analysts had expected the index to decline to 67.5 in February.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
Meanwhile, the single currency remained well supported by expectations of a near term interest rate hike by the European Central Bank.
Earlier Monday, official data showed that the final euro zone inflation rate for January came in slightly softer than the initial estimate but still accelerated at the fastest pace since October 2008, rising 2.3%.
Elsewhere, the euro was down against the pound, with EUR/GBP shedding 0.28% to hit 0.8508.
Also Monday, industry data showed that pending home sales in the U.S. fell more-than-expected in January, declining for the second consecutive month.
EUR/USD hit 1.3855 during European late afternoon trade; the pair’s highest since February 2; the pair subsequently consolidated at 1.3832, gaining 0.58%.
The pair was likely to find support at 1.3646, last Wednesday’s low and short-term resistance at 1.3860, the high of February 2 and a three-month high.
Earlier in the day, the Commerce Department said consumer spending increased less-than-expected in January, rising 0.2% after increasing by a revised 0.5% the previous month. The slowdown in spending came even while personal income rose by 1.0%, the largest gain since May 2009.
A separate report showed that manufacturing activity in the Chicago area rose unexpectedly in February.
Market research group Kingsbury International said its Chicago purchasing managers’ index rose to a seasonally adjusted 71.2 in February, up from 68.8 in January. Analysts had expected the index to decline to 67.5 in February.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
Meanwhile, the single currency remained well supported by expectations of a near term interest rate hike by the European Central Bank.
Earlier Monday, official data showed that the final euro zone inflation rate for January came in slightly softer than the initial estimate but still accelerated at the fastest pace since October 2008, rising 2.3%.
Elsewhere, the euro was down against the pound, with EUR/GBP shedding 0.28% to hit 0.8508.
Also Monday, industry data showed that pending home sales in the U.S. fell more-than-expected in January, declining for the second consecutive month.