NEW YORK (Forex News Now) – The dollar extended its recent rebound against the euro on Monday, hitting a 4-day high, ahead of a raft of U.S. economic data and as FX traders were said to unwind bets versus the greenback.
In early European currency market trading, EUR/USD hit 1.3831, the currency pair’s lowest since Oct. 10. EUR/USD later rose slightly to trade at 4028, down 0.4 percent on the day.
Later Monday, the U.S. Treasury was later due to publish its closely watched Treasury International Capital report on foreign holdings of U.S. long-term securities in August. The U.S. was also due to release official data on industrial production and capacity utilization.
According to EUR USD analysis, EUR/USD was likely to touch immediate support around the low of Oct. 12, 1.1.3775, and encounter short-term resistance around Friday’s 8-month high, 1.4158.
Reuters quoted market players, meanwhile, as saying the short-covering bounce may have more room to run given the recent build-up of bets against the dollar, in light of data from the U.S. Commodity Futures Trading Commission.
Elsewhere, the euro slumped versus sterling: EUR/GBP traded at 0.875, down 0.53 percent, according to intraday analysis.