Investing.com – The euro erased losses against the U.S. dollar on Monday, pulling back from the daily low boosted by hopes that an upcoming European Union summit would result in a breakthrough in tackling the euro zone’s debt crisis.
EUR/USD rebounded from 1.3823, the daily low, to hit 1.3906 during U.S. morning trade, edging up 0.08%.
The pair was likely to find support at 1.3655, the low of October 20 and resistance at 1.3953, the days high and a six-week high.
EU leaders moved closer to an agreement on bank recapitalization on Sunday, while Germany and France neared an agreement on expanding the firepower of the euro zone’s bailout fund. But divisions over restructuring Greek debt remained and a final agreement was expected be reached at Wednesday’s follow-up EU summit.
Sentiment on the single currency was hit earlier after data showed that the preliminary euro zone services purchasing managers’ index slumped to a 27-month low in October, while manufacturing activity in the region also declined to a 27-month low.
The preliminary composite PMI for the euro zone fell to 47.2 in October; the lowest level since July 2009, down from September's 49.1, adding to fears that the euro zone may be slipping into a recession.
Elsewhere, the euro was fractionally lower against the pound, with EUR/GBP dipping 0.04% to hit 0.8707.
Also Monday, official data showed that industrial new orders in the euro zone rose significantly more-than-expected in August, climbing 1.9%, outstripping expectations for a 0.1% gain and rising for the first time in three months.
EUR/USD rebounded from 1.3823, the daily low, to hit 1.3906 during U.S. morning trade, edging up 0.08%.
The pair was likely to find support at 1.3655, the low of October 20 and resistance at 1.3953, the days high and a six-week high.
EU leaders moved closer to an agreement on bank recapitalization on Sunday, while Germany and France neared an agreement on expanding the firepower of the euro zone’s bailout fund. But divisions over restructuring Greek debt remained and a final agreement was expected be reached at Wednesday’s follow-up EU summit.
Sentiment on the single currency was hit earlier after data showed that the preliminary euro zone services purchasing managers’ index slumped to a 27-month low in October, while manufacturing activity in the region also declined to a 27-month low.
The preliminary composite PMI for the euro zone fell to 47.2 in October; the lowest level since July 2009, down from September's 49.1, adding to fears that the euro zone may be slipping into a recession.
Elsewhere, the euro was fractionally lower against the pound, with EUR/GBP dipping 0.04% to hit 0.8707.
Also Monday, official data showed that industrial new orders in the euro zone rose significantly more-than-expected in August, climbing 1.9%, outstripping expectations for a 0.1% gain and rising for the first time in three months.