Forex – EUR/USD higher but gains seen limited

5244d4d344c7e4e3cab85f829996b3f4.jpg – The euro was higher against its U.S. counterpart on Friday, but gains were expected to remain limited as expectations for a rate hike by the Federal Reserve next week continued to support the greenback.

hit 1.1031 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.0988, gaining 0.40%.

The pair was likely to find support at 1.0877, the low of December 9 and resistance at 1.1040, the high of December 9 and a one-month high.

Demand for the dollar continued to be underpinned by expectations that the Fed is on track to raise interest rates for the first time since 2006 at its upcoming meeting on December 15-16.

Higher interest rates would make the dollar more attractive to yield-seeking investors.

The University of Michigan reported on Friday that its rose to 91.8 in November from 91.3 the previous month. Analysts had expected the index to rise to 92.0 last month.

The report came shortly after data showed that rose 0.2% in November, compared to expectations for a 0.3% gain, after a 0.1% uptick the previous month.

, which exclude automobiles, increased by 0.4% last month, beating expectations for a 0.3% rise.

A separate report showed that rose 0.3% in November, compared to a 0.1% fall.

, which exclude food and energy, gained 0.3% in November, exceeding expectations for a 0.1% uptick.

Meanwhile, the euro remained mildly supported after the latest round of easing announced by the European Central Bank fell well short of market expectations.

The euro was steady against the pound, with at 0.7214.

by Investing