Investing.com - The euro slid against the dollar Monday as optimism stemming from last week's agreement among European Union countries to better coordinate fiscal policies tempered a bit, with investors shifting their focus to the United States ahead of key data later this week.
EUR/USD hit 1.3365 during early Asian trading, down 0.16% and slightly up from a session low of 1.3360.
The pair was likely to find support at 1.3282, Friday’s low, and resistance at 1.3459, Thursday’s high.
In Europe on Friday, almost all members of the 27-member European Union agreed to stricter fiscal rules and greater integration, including tough punishments to those who run deficits beyond limits.
Great Britain, which doesn't operate on the euro, was the holdout, voting against supporting a new pact due to new terms they impose, including a financial transaction tax, which Britain sees as threatening to its markets.
Furthermore, European leaders agreed to shuffle 200 billion euros to the International Monetary Fund to help aid European bailout facilities, which drew market applause.
The task at hand now, however, lies in turning those treaty promises into reality.
The euro was also down slightly against the pound, with EUR/GBP dipping 0.01% to hit 0.8541.
Currency markets will now turn their eyes to the United States from Europe this week.
On Monday, the Treasury Department will release its latest budget figures, with market consensus forecasting a $138.0 billion deficit compared with a $98.5 billion shortfall in October.
The Federal Reserve will hold its monthly monetary policy meeting Tuesday, where policymakers will address benchmark interest rates.
While financial markets are expecting the Federal Reserve to hold interest rates at a very low 0.25%, language associated with this week's decision suggesting economic recovery continues sluggish could keep the greenback weaker and against the world's major economic currencies.
In Europe, the German Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment Index will publish on Tuesday.
The index, which gauges the sentiment in Europe's economic engine, should come in at -55.8 compared to a previous -55.2 reading.
Any surprises for the worse could spell trouble for the euro.
Also on Monday, French inflation figures are due for release.
French inflation rates are expected to come in around 0.3% for November compared with 0.2% in October.
EUR/USD hit 1.3365 during early Asian trading, down 0.16% and slightly up from a session low of 1.3360.
The pair was likely to find support at 1.3282, Friday’s low, and resistance at 1.3459, Thursday’s high.
In Europe on Friday, almost all members of the 27-member European Union agreed to stricter fiscal rules and greater integration, including tough punishments to those who run deficits beyond limits.
Great Britain, which doesn't operate on the euro, was the holdout, voting against supporting a new pact due to new terms they impose, including a financial transaction tax, which Britain sees as threatening to its markets.
Furthermore, European leaders agreed to shuffle 200 billion euros to the International Monetary Fund to help aid European bailout facilities, which drew market applause.
The task at hand now, however, lies in turning those treaty promises into reality.
The euro was also down slightly against the pound, with EUR/GBP dipping 0.01% to hit 0.8541.
Currency markets will now turn their eyes to the United States from Europe this week.
On Monday, the Treasury Department will release its latest budget figures, with market consensus forecasting a $138.0 billion deficit compared with a $98.5 billion shortfall in October.
The Federal Reserve will hold its monthly monetary policy meeting Tuesday, where policymakers will address benchmark interest rates.
While financial markets are expecting the Federal Reserve to hold interest rates at a very low 0.25%, language associated with this week's decision suggesting economic recovery continues sluggish could keep the greenback weaker and against the world's major economic currencies.
In Europe, the German Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment Index will publish on Tuesday.
The index, which gauges the sentiment in Europe's economic engine, should come in at -55.8 compared to a previous -55.2 reading.
Any surprises for the worse could spell trouble for the euro.
Also on Monday, French inflation figures are due for release.
French inflation rates are expected to come in around 0.3% for November compared with 0.2% in October.