Investing.com - The euro was trading close to one-month lows against the broadly stronger dollar on Monday as the improving U.S. economic outlook sparked speculation that the Federal Reserve may scale back its easing program. EUR/USD hit 1.2959 during late Asian trade, the session low; the pair subsequently consolidated at 1.2974, dipping 0.11%. The pair was likely to find support at 1.2934, Friday’s low and the pair’s lowest since April 5 and resistance at 1.3050, Friday’s high. The dollar rallied against all the major currencies on Friday as recent strong U.S. employment data fuelled optimism over an earlier-than-expected end to the Fed’s USD85 billion a month asset purchase program. Data on Thursday showed that showed that U.S. initial jobless claims fell to the lowest level since January 2008 in the week ending May 4. Earlier this month official data showed that the U.S. economy added more jobs than forecast in April, pushing the unemployment rate to a more than four-year low of 7.5%. The euro was little changed near three-year highs against the weaker yen, with EUR/JPY dipping0.03% to 131.96. The dollar was at four-and-a-half year highs against the yen, with USD/JPY edging up 0.09% to 101.70. The eurogroup of euro zone finance ministers were to hold talks in Brussels on Monday, while the U.S. was to release official data on retail sales later in the trading day.

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