US dollar managed to preserve higher levels against the euro

On Monday US dollar traded close to 2-week highs against the euro after the signal, submitted by FED last Wednesday, which shot the greenback sky-high against most of its major peers.

EUR/USD pair slid to a session low at 1.3088 during the later phase of Asian trade, lowest value since June 6th, after which consolidation followed at 1.3099. Support was expected at June 4th low, 1.3041, while resistance was to be encountered at June 21st high, 1.3169.

US dollar gained strength after last Wednesday FED Chairman Ben Bernanke announced that the central bank could begin slowing bond purchases by the end of 2013 and wind them down completely by the middle of 2014, a statement that continued weighing on market sentiment during the recent trading days.

Meanwhile, the euro was hit by political news from Greece, as on Friday the countrys Democratic Left Party withdrew from the coalition government. The main reason was governments decision to shut down the state broadcaster, ERT. Democratic Left party (DIMAR) met on Friday morning to determine whether the party would continue to back Prime Minister Antonis Samaras. He cut ERT off air, as he sought to roll back the public sector to show Greek lenders that he was sticking to plans to cut costs as part of the bailout. The conservative New Democratic party, along with its Socialist PASOK ally, jointly have 153 members in the Greek parliament of 300 seats, a majority of three, which means Samaras can still govern without the 14 members of DIMAR. Additionally, on Friday the International Monetary Fund said it would not suspend Greek funding, but announced a deadline for the government to reach an agreement, regarding its bailout. That matter was to be settled until July.

The euro climbed higher against the British pound and the Japanese yen. EUR/GBP cross was up by 0.12% to 0.8517, while EUR/JPY added 0.36% to 128.86.

Later on Monday the IFO institute was expected to release data, regarding German business climate, economic expectations and current assessment.