Forex Pros – The euro slipped to a daily low against the U.S. dollar on Monday, but remained supported close to a one-month high amid expectations of a European Central Bank rate increase and a fresh Greek bailout deal.
EUR/USD hit 1.4604 during European late morning trade, the daily low; the pair subsequently consolidated at 1.4605, sliding 0.20%.
The pair was likely to find support at 1.4450, Friday’s low and resistance at 1.4898, the high of May 5.
The single currency found support after the European Union and International Monetary Fund said Friday that Greece would likely get the next tranche of money from last year’s EUR110 billion bailout in July.
Elsewhere, the ECB was to hold its rate-setting meeting on Thursday, where it was widely expected to signal a July interest-rate hike. The bank bumped up its key interest rate to 1.25% from 1% in April amid rising consumer prices.
Earlier Monday, official data showed that euro zone producer prices rose slightly more-than-expected in April, up 0.9% after a rise of 0.8% in March, indicating continuing upward pressure on consumer prices.
The euro was also slightly lower against the pound, with EUR/GBP slipping 0.09% to hit 0.8900.
Later in the day, Philadelphia Federal Reserve Bank President Charles Plosser and Dallas Fed President Richard Fisher were scheduled to speak. Their comments would be closely watched for their views on the U.S. economic recovery.
ForexPros.com
