Forexpros - The euro was steady against the U.S. dollar on Monday, as investors remained cautious ahead of the European Central Bank's policy setting meeting and U.S. employment data later in the week.
EUR/USD hit 1.2587 during European afternoon trade, the session high; the pair subsequently consolidated at 1.2570, dipping 0.05%
The pair was likely to find support at 1.2492, Friday’s low and resistance at 1.2636, Friday’s high and a nine-week high.
The single currency continued to be supported by expectations that the ECB is working on measures to help stabilize the euro zone's sovereign debt markets ahead of its upcoming meeting on Thursday.
But concerns over the outlook for growth weighed after revised data showed that the euro zone’s manufacturing sector contracted for the 13th month in a row in August.
Markit said the bloc’s manufacturing purchasing managers’ index rose to 45.1 from July's 37-month low of 44, but remained well below the 50 mark that separates growth from contraction.
The euro was slightly lower against the pound and the yen, with EUR/GBP slipping 0.17% to 0.7916 and EUR/JPY down 0.15% to 98.42.
ECB President Mario Draghi was scheduled to testify before the European Parliament's Economic and Monetary Affairs Committee, in Brussels later in the session.
Meanwhile, trade looked likely to remain subdued, with markets in the U.S. closed for the Labor Day holiday.
