Forexpros – The euro was steady against the U.S. dollar on Monday, trading close to a one month high amid hopes that European Union leaders are edging closer to unveiling a plan to stem the deepening debt crisis in the euro zone.
EUR/USD hit 1.3954 during late Asian trade, the pair’s highest since September 8; the pair subsequently consolidated at 1.3900, inching up 0.02%.
The pair was likely to find support at 1.3655, the low of October 20 and resistance at 1.3953, the days high and a six-week high.
A meeting of EU leaders on Sunday moved closer to an agreement on recapitalizing European banks and expanding the firepower of the euro zone’s bailout fund, but divisions remain over the restructuring of Greek debt.
Elsewhere Monday, data showed that French private sector output declined for the first time since mid-2009 in October.
But risk appetite remained supported after private sector data showed that manufacturing activity in China rebounded in October, after contracting in the three previous months.
The euro was lower against the pound, with EUR/GBP slipping 0.10% to hit 0.8702.
Later in the day, the euro zone was to release preliminary data on activity in the manufacturing and services sectors, while Germany was also to publish individual reports. The euro zone was also to publish official data on industrial new orders.
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