Investing.com – The euro was steady against the U.S. dollar on Monday, trading close to a one month high, supported by optimism over a tentative euro zone deal on a new financing package for Greece and expectations of a European Central Bank rate hike.
EUR/USD hit 1.4593 during early U.S. trade, the daily low; the pair subsequently consolidated at 1.4618, slipping 0.12%.
The pair was likely to find support at 1.4450, Friday’s low and resistance at 1.4898, the high of May 5.
The single currency found support after the European Union and International Monetary Fund said Friday that Greece would likely get the next tranche of money from last year's EUR110 billion bailout in July.
ECB governing council member Christian Noyer warned earlier that countries who have agreed assistance programs with official lenders such as the EU and the IMF have to stick to them, saying, "solutions akin to debt restructuring are not an option”.
Meanwhile, the ECB was to hold its rate-setting meeting later in the week, where it was widely expected to signal a July interest-rate hike. The central bank bumped up its key interest rate to 1.25% from 1% in April amid rising consumer prices.
Meanwhile, the euro was higher against the pound, with EUR/GBP rising 0.18% to hit 0.8925.
Also Monday, official data showed that euro zone producer price inflation rose slightly more-than-expected in April, up 0.9% after a rise of 0.8% in March, indicating continuing upward pressure on consumer prices.
EUR/USD hit 1.4593 during early U.S. trade, the daily low; the pair subsequently consolidated at 1.4618, slipping 0.12%.
The pair was likely to find support at 1.4450, Friday’s low and resistance at 1.4898, the high of May 5.
The single currency found support after the European Union and International Monetary Fund said Friday that Greece would likely get the next tranche of money from last year's EUR110 billion bailout in July.
ECB governing council member Christian Noyer warned earlier that countries who have agreed assistance programs with official lenders such as the EU and the IMF have to stick to them, saying, "solutions akin to debt restructuring are not an option”.
Meanwhile, the ECB was to hold its rate-setting meeting later in the week, where it was widely expected to signal a July interest-rate hike. The central bank bumped up its key interest rate to 1.25% from 1% in April amid rising consumer prices.
Meanwhile, the euro was higher against the pound, with EUR/GBP rising 0.18% to hit 0.8925.
Also Monday, official data showed that euro zone producer price inflation rose slightly more-than-expected in April, up 0.9% after a rise of 0.8% in March, indicating continuing upward pressure on consumer prices.