The euro edged higher in early deals Monday, paring most of its Asian session decline, as European bourses are trading green, despite lingering worries over global economic growth prospects. China's better-than expected trade data soothed the market, with exports rising almost 10 percent year-over-year to $186.35 billion in the month on improved overseas demand. However, gains were capped by market judgment that the better export figures could be due to some indirect factors, attributed to mid-autumn festival and the golden week. A separate report from the National Bureau of Statistics showed that China's inflation rate eased further in September, giving policymakers more leeway to pursue appropriate policies should the economy deteriorate further. Germany's DAX rose 0.85 percent, the U.K.'s FTSE 100 jumped 0.52 percent and France's CAC 40 advanced 1.38 percent around 6:00 am ET. The European shared currency was down in the Asian session as traders took cautious stand ahead of a EU Summit in Brussels, which is kicking off on Thursday night. The EU leaders are expected to discuss the unaddressed issues in Europe, especially the issues surrounding Greece and Spain. Market participants are also cautious ahead of this week's major earnings reports, which include third quarter results of Citigroup, Goldman Sachs and Bank of America. The euro rose above the key 102.0 level against the yen for the first time after a gap of a week, rising as much as 102.11 around 5:30 am ET, up 0.52 percent from Friday's close of 101.57. A triangle pattern is being underway in the daily chart of the euro-yen pair with top-line resistance visible above the 100.20 level and a bottom-line channel support is seen below 100.30. Rebounding from its Asian session's steep losses, the euro rose as high as 1.2970 against the US dollar before leveling off around 5:00 am ET. A triangle formation is also in the progress in the daily chart of the euro-buck pair with a potential breakout is being seen at 1.2840/50 on the downside and 1.3015/20 visible on the upside. The Federal Reserve chairman Ben Bernanke has defended the central bank's measures to bolster the world's largest economy, saying the central bank's highly simulative monetary policy is not the "dominant" force behind surging capital flows to emerging market economies. The euro reversed its Asian session decline against the pound in early deals, snapping back to 0.8076 around 4:50 am ET from a 4-day low of 0.8042 hit in the Asian session. On the upside, the cross is expected to move beyond the key 0.81 mark after a 6-day gap.

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