Investing.com - The euro pushed lower against the U.S. dollar on Monday, as strong U.S. data boosted demand for the greenback amid growing expectations for a U.S. rate hike in the upcoming months.
EUR/USD hit 1.1147 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.1167, sliding 0.25%.
The pair was likely to find support at 1.1114, Friday's low and resistance at 1.1231, Friday's high.
The U.S. Bureau of Economic Analysis reported that personal spending rose 0.4% in August, beating expectations for an increase of 0.3%. Personal spending rose 0.4% in July, whose figure was revised from a previously estimated 0.3% gain.
The report also showed that personal income increased by 0.3% last month, compared to expectations for a 0.4% gain. Personal income rose 0.5% in July, whose figure was revised from a previously estimated 0.4% increase.
The data added to support for the greenback after Federal Reserve Chair Janet Yellen said last Thursday that the U.S. central bank remains on track to raise interest rates this year.
The comments reassured investors that monetary policy has not altered significantly following the Fed’s decision to hold off hiking rates earlier this month.
Also Monday, the U.S. National Association of Realtors said that pending home sales dropped 1.4% in August, confounding expectations for a 0.4% uptick after a 0.5% rise the previous month.
Separately, market sentiment weakened after International Monetary Fund head Christine Lagarde said in an interview on Monday that the IMF is likely to revise downwards its estimates for global economic growth due to slower expansion in emerging economies.
The euro was also lower against the pound, with EUR/GBP shedding 0.24% to 0.7357.