The euro edged higher against the dollar on Monday after two days of losses, lifted by euro zone data showing business activity picked up, while uncertainty over the Federal Reserve’s economic stimulus program kept investors wary of the greenback.
The Fed goes into a two-day meeting starting on Tuesday and market participants have started to price in the possibility that it will opt for a small reduction in its bond purchases.
The euro rose to just shy of $1.38 after a report on Monday showed German manufacturing activity and the Flash Eurozone Composite Purchasing Managers’ Index (PMI) both beat forecasts in December.
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