Investing.com - The euro edged up against the U.S. dollar on Monday, easing off a 14-month low but gains were expected to be capped as growing expectations for an early U.S. rate hike continued to support the greenback.
EUR/USD hit 1.2868 during European morning trade, the session high; the pair subsequently consolidated at 1.2855, adding 0.19%.
The pair was likely to find support at 1.2826, the low of September 19 and resistance at 1.2929, the high of September 19.
The dollar remained supported as signs that the economic recovery is making solid progress fuelled expectations that the Fed will hike interest rates sooner than markets are expecting.
Last week, the Fed offered fresh guidance on its plans to raise interest rates, outlining in more detail how it will start to raise short term interest rates when the time comes.
The euro has remained under broad selling pressure since the European Central Bank unexpectedly cut rates to record lows across the euro zone earlier this month, and implemented fresh measures in an attempt to shore up inflation in the currency bloc.
Last Thursday, the ECB said that euro area lenders borrowed less than expected from the central bank under its new low cost loan program.
The ECB said it allotted €82.6 billion to 255 bidders in its new Targeted Long Term Refinancing Operation, or TLTRO. That was well below the €100 to €150 billion predicted by analysts.
The low loan uptake indicated that the operation will have only a limited impact on boosting liquidity in the euro area.
The euro was fractionally lower against the pound, with EUR/GBP edging down 0.09% to 0.7872.