Forexpros – The euro was higher against the U.S. dollar on Monday, boosted by hopes that European Union leaders will be able to reach an agreement on a fiscal pact to halt the spread of the region’s debt crisis.
EUR/USD hit 1.3335 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3276, gaining 0.29%.
The pair was likely to find support at 1.3211, Friday’s low and a seven-week low and resistance at 1.3410, the high of November 24.
Germany and France are leading the negotiations, which are aimed at more rapid fiscal integration among euro zone members and which would make budget discipline legally binding and enforceable by European authorities.
The pact, if agreed, would also give the European Central Bank more scope to undertake large scale bond purchases.
But the single currency remained under pressure after a spokesman for the International Monetary Fund dismissed speculation that the body was preparing a EUR600 bailout package for Italy.
The euro was slightly higher against the pound, with EUR/GBP easing up 0.09% to hit 0.8581.
Later in the day, Germany was to produce preliminary data on consumer price inflation, as well as a report on consumer climate. Also Monday, the U.S. was to release official data on new home sales.
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