The euro pushed lower against the U.S. dollar in quiet trade on Monday, as speculation over fresh easing measures by the European Central Bank continued to weigh, while markets remained focused on developments in Ukraine.
EUR/USD hit 1.3378 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.3367, shedding 0.25%.
The pair was likely to find support at 1.3349, the low of August 14 and short-term resistance at 1.3412, the high of August 15.
Sentiment on the single currency remained fragile after data on Thursday showing that the euro zone economy stagnated in the second quarter fuelled speculation that the ECB will embark on quantitative easing to bolster the faltering recovery in the region.
Meanwhile, concerns over the conflict between Russia and Ukraine escalated on Friday after Ukraine’s military attacked and destroyed a number of armored vehicles that entered the country from Russia.
But market sentiment found some support amid hopes that a meeting due to take place between Russian and Ukraine’s foreign ministers later in the day would result in a breakthrough to ease geopolitical tensions in the region.
In the U.S., data on Monday showed that the National Association of Home Builders/Wells Fargo rose to a seven-month high of 55.0 in August from 53.0 in July, beating estimates for a reading of 53.0.
The euro was lower against the pound, with EUR/GBP retreating 0.46% to 0.7992.
The pound strengthened broadly after Bank of England Governor Mark Carney said over the weekend that interest rates could rise before wage growth picks up.