Forex - EUR/USD extends gains after trade data

The euro extended gains against the dollar on Monday after upbeat euro zone trade data, as investors awaited further indications on how long the Federal Reserve will keep its stimulus policies in place.

During European afternoon trade, EUR/USD edged up 0.12% to 1.3512, the highest since November 7, from Friday’s close of 1.3495.

The pair was likely to find support at 1.3431, Friday’s low and resistance at 1.3546, the high of November 6.

The dollar eased as comments by Fed Chairwoman nominee Janet Yellen last week were seen as reiterating the need for continued stimulus to ensure a robust economic recovery.

Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.

The euro found support after Eurostat said the euro zone’s trade surplus widened to EUR13.1 billion in September from EUR8.6 billion a year earlier. The report said exports rose 3%, while imports were flat.

The euro was steady at two-week highs against the yen, with EUR/JPYinching up 0.01% to 135.22. 

The yen remained under pressure after Japanese Finance Minister Taro Aso said Thursday it is important to retain foreign exchange intervention as a policy tool to counter speculative moves in the currency market.

Elsewhere, the euro pushed higher against the pound, with EUR/GBPrising 0.21% to 0.8388.