Forexpros – The euro edged higher against the U.S. dollar on Monday, as upbeat manufacturing data out of China supported demand for higher-yielding assets, but gains were limited amid ongoing concerns over the outlook for global growth.
EUR/USD hit 1.3377 during late Asian trade, the session high; the pair subsequently consolidated at 1.3350, edging up 0.08%.
The pair was likely to find support at 1.3276, the low of March 28 and resistance at 1.3384, the high of March 27 and a one-month high.
Government data on Sunday showed that China’s manufacturing purchasing managers’ index rose to an 11-month high of 53.1 in March, up from a reading of 51.0 the previous month and beating analysts forecasts.
The data eased concerns over the possibility of a slowdown in the world’s largest economy, but investors remained cautious ahead of manufacturing data from the U.K. and the U.S. later in the day.
The euro also found support after euro zone finance ministers agreed to strengthen the region’s debt firewall on Friday, but concerns remained over whether the measures would be enough to prevent contagion to Spain and Italy.
The euro edged higher against the pound, with EUR/GBP easing up 0.07% to hit 0.8334 and was also higher against the yen, with EUR/JPY rising 0.19% to hit 110.75.
Later Monday, the euro zone was to produce official data on the unemployment rate, while the Institute of Supply Management was to release a report on U.S. manufacturing activity.
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