Investing.com - The euro edged higher against the dollar on Monday after data showed that U.S. pending home sales fell in June, but gains remained limited amid concerns over the divergence in monetary policy between the European Central Bank and its major peers.
EUR/USD edged up 0.06% to 1.3437, hovering just above Friday’s eight month lows of 1.3420.
The pair was likely to find support at around the 1.3400 level and resistance at 1.3475.
The dollar dipped after the National Association of Realtors reported that pending home sales fell 1.1% last month, disappointing expectations for a 0.5% gain.
On a year-over-year basis, pending home sales were down 4.5% in June, compared to expectations for a decline of 5.2%.
Demand for the dollar continued to be underpinned ahead of the latest U.S. employment report later in the week and the upcoming Federal Reserve statement on Wednesday.
Investors were also awaiting final data on U.S. second-quarter growth on Wednesday.
Earlier this month Fed Chair Janet Yellen said that rates could rise sooner if the recovery in the labor market continued.
The euro zone was to release what would be closely watched data on consumer prices on Thursday, amid concerns over persistently low levels of inflation in the currency bloc.
The shared currency has come under pressure since the ECB cut rates to record lows on June 5, in a bid to stave off the risk of deflation and shore up growth in the region.
Elsewhere Monday, EUR/JPY was little changed at 136.75, not far from the five month lows of 136.35 reached last Thursday.