The euro gained positions against the US dollar on Monday, but the cross saw limited upward movement, as expectations that the Federal Reserve may be closer to start paring back its asset purchases continued to weigh on greenbacks demand.
EUR/USD reached a session high at 1.3167 at 0:10 GMT, the highest point since July 11th, after which consolidation followed at 1.3146. Support was likely to be received at July 19th low, 1.3088, while resistance was to be met at July 11th high, 1.3205.
On July 18th, in his second day of testimony on monetary policy before the Financial Services Committee in US Congress last week, FED Chairman Ben Bernanke reiterated that monetary policy will remain accommodative in the foreseeable future, even as the central bank begins to scale back its asset purchasing program. On July 17th Bernanke said the central bank expected to begin tapering asset purchases by the end of the year, but also added that monetary policy was not on a “preset course”.
Meanwhile, EUR/JPY pair erased 0.19% for the day, trading at 131.67 at 8:41 GMT. On the other hand, the euro was trading with stability against the British pound, as EUR/GBP cross ticked up a mere 0.03% to 0.8610 at 8:43 GMT.
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