Forexpros – The euro slid lower against the U.S. dollar on Monday, but the single currency remained supported by expectations that the European Central Bank will soon implement fresh measures to contain the euro zone debt crisis.
EUR/USD hit 1.2284 during late Asian trade, the session low; the pair subsequently consolidated at 1.2292, slipping 0.23%.
The pair was likely to find near-term support at 1.2240, Friday’s low and resistance at 1.2389, Friday’s high and a three-week high.
The euro remained supported ahead of the ECB’s policy meeting on Thursday, amid growing expectations that the bank will announce measures to lower Spanish and Italian borrowing costs.
On Thursday, ECB President Mario Draghi pledged last week to do whatever is necessary to preserve the single currency.
German Chancellor Angela Merkel and French President Fran?ois Hollande vowed to defend the euro in a joint statement on Friday and said that they are “deeply committed to the integrity of the euro zone.”
Markets were also looking ahead to the outcome of the Federal Reserve’s policy setting meeting on Wednesday, amid speculation over whether the bank will hint at further easing measures.
The euro was little changed against the pound, with EUR/GBP inching up 0.01% to 0.7822, but turned lower against the yen, with EUR/JPY slipping 0.31% to 96.35.
Later in the day, U.S. Treasury Secretary Timothy Geithner was to meet with German Finance Minister Wolfgang Schaeuble and Mario Draghi to discuss the global economy.
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