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Euro on higher levels against the US dollar

eur-dollar1Euro moved higher against the US dollar on Monday, but gains seemed capped on expectations that FED will start to unwind monthly asset purchases and also on Chinese PMI data.

EUR/USD pair hit a session high at 1.3035 at 6:24 GMT, after which consolidation followed at 1.3030. The cross was up by 0.16% for the day. Support was expected at June 26th low, 1.2983, while resistance was to be met at June 26th high, 1.3085.

The greenback was receiving ongoing support as a result of expectations that the Federal Reserve Bank will soon begin to scale back its Quantitative Easing. Market players were also looking forward to Fridays non-farm payrolls report. Later today the ISM was to release information on US manufacturing activity.

Meanwhile, a report said that Chinese PMI stood at 50.1 in June, following the reading of 50.8 a month ago. On the other hand, Chinese HSBC manufacturing PMI dropped to a 9-month low at 48.2 in June, continuing the slide, as in May the index showed 48.3. Both results were below the 50.0 level, which divides contraction from expansion.

Euro was higher against the British pound as well, with EUR/GBP pair up by 0.05% to 0.8558.

Markets expected Manufacturing PMI in Italy, Spain, France, Germany and the Euro zone as a whole, as these crucial indicators were scheduled to be released later on Monday.

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