Forexpros – The euro edged higher against the U.S. dollar on Monday, after Italy’s prime minister unveiled measures to slash the nation’s debt and sentiment was also boosted by hopes that European leaders can agree on plan to tackle the region’s debt crisis at a key summit this week.
EUR/USD hit 1.3440 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3434, gaining 0.31%.
The pair was likely to find support at 1.3362, Friday’s low and resistance at 1.3549, Friday’s high and an eight-day high.
Italian Prime Minister Mario Monti unveiled a EUR30 billion package of austerity measures designed to reduce the euro-region’s second-biggest debt on Sunday, raising taxes and increasing the pension age.
Meanwhile, German Chancellor Angela Merkel was to hold talks with French President Nicolas Sarkozy to outline proposals for stricter enforcement of the region’s budget discipline that will be presented to European Union leaders at Friday’s summit.
The euro was fractionally higher against the pound, with EUR/GBP inching up 0.04% to hit 0.8589.
Also Monday, the euro zone was to produce a report on investor confidence, as well as official data on retail sales. In the U.S., the Institute of Supply Management was to release a report on service sector activity.
Forexpros
