- The euro firmed up against the dollar on Monday, stabilizing after posting steep losses in the previous two sessions, but gains were held in check amid concerns that the European Central Bank could ease monetary policy as soon as next month.

EUR/USD was last trading at 1.3766, but was still close to the one-month trough of 1.3744 reached late Friday.

The pair was likely to find support at 1.3695 and resistance at 1.3800.

The euro fell from two-and-a-half year highs against the dollar on Thursday after ECB President Mario Draghi said the banks is “comfortable” with acting to shore up growth and stop inflation from falling too low at its next meeting in June.

The ECB left rates on hold on Thursday, as widely expected.

Meanwhile, investors remained cautious after pro-Russian separatists claimed victory in a weekend referendum on self-rule in eastern Ukraine, fuelling fears that the country is sliding closer to civil war. The vote has been condemned by Ukraine’s government and the West.

The euro was also higher against the yen, with EUR/JPY rising 0.14% to 140.27, up from Friday’s two-month lows of 139.87.

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