Investing.com - The euro bounced up from near 22-month lows against the dollar on Monday after mixed U.S. data sent investors selling the greenback for profits.
Euro gains as investors view single currency as oversoldIn U.S. trading, EUR/USD was up 0.15% at 1.2703, up from a session low of 1.2664 and off a high of 1.2761.
The pair was likely to find support at 1.2660, the low from Nov. 13, 2012, and resistance at 1.2903, last Tuesday's high.
Expectations for U.S. monetary policy to grow less accommodative at a time when Europe may move to loosen have firmed the dollar in recent sessions, though by Monday, mixed U.S. data gave investors room to sell the greenback for profits.
The National Association of Realtors reported earlier that its pending home sales index fell 1.0% to 104.7 in August from 105.8 in July. Economists had expected the index to tick down 0.1% last month.
Separately, the Commerce Department said that U.S. personal spending rose 0.5% in August, beating expectations for an increase of 0.4%, after a 0.1% dip in July.
The report also showed that personal income, reflecting income from wages, investment, and government aid, rose 0.3%, up from 0.2% in July, broadly in line with forecasts.
On Friday, the dollar advanced after the Commerce Department said U.S. gross domestic product expanded at an annual rate of 4.6% in the second quarter, in line with the consensus forecast.
The euro, meanwhile, saw demand from bottom fishers.
Last week, European Central Bank President Mario Draghi reiterated the bank's commitment to act with more policy measures to boost inflation in the euro zone.
Draghi had vowed to keep monetary policy "accommodative" for as long as needed, and to use every tool at the ECB's disposal to fight deflation.
Elsewhere in Europe on Monday, Germany's consumer price index remained unchanged this month, according to official preliminary data.
In a report, Federal Statistical Office Germany said that German CPI remained unchanged at 0.0% in September from 0.0% in the preceding month.
Analysts had expected German CPI to fall -0.1%.
Elsewhere, the euro was up against the pound, with EUR/GBP up 0.04% at 0.7811, and up against the yen, with EUR/JPY up 0.22% at 138.91.
