Euro approaches 1.3100 on European news

FXstreet.com (Córdoba) - The euro advanced to a fresh 6-week high versus the dollar on Monday as financial markets begin the week in a constructive mood after Spain formally requested a bailout to recapitalize banks and Greece launched a debt buyback.

However, market optimism was tempered by disappointing US manufacturing data. Even though US stocks opened higher, they gave up gains after a report showed US ISM manufacturing index fell into contractor territory.

For the week ahead there are several central bank monetary policy announcements and the US employment report, while investors will also be closely following the ongoing US budget talks.

Euro hits 6-week high, nears 1.3100

EUR/USD printed a 6-week high of 1.3074 during the New York session and was last up 0.5% at the 1.3065 zone. Technically speaking, the euro holds a short-term bullish bias, with 1.3080 level as the last hurdle on the way to 1.3100, with 1.3170 coming into view. On the other hand, the 1.3000/10 area should offer support.

"Fundamentally, there doesn't seem to be much that can hurt the EUR these days, with the single currency making marginal new highs overnight despite the EFSF/ESM rating downgrade after the close on Friday and not-so-great PMIs overnight", says the TD Securities team. "EUR/USD is now trading comfortably above 1.30, and continues to look positive from a short/medium/long term technical perspective".

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

RELATED TOPICS