The euro traded on a firm tone despite the narrow range and made a modest gain from 1.1335 to 1.1372 (+37 pips) on the slightly bullish comment from the ECB Governor Council member Josef Bonnici who said that "expectations of imminent policy action are premature and it was too early to decide on new measures of the extension of quantitative easing.
Bonnici, who recently met with European finance ministers in Luxembourg adds that the policy makers made it clear in recent days that the financial markets could be getting ahead of themselves in anticipating new action from the ECB.
The inital gain of the euro also came from a modest return of risk appetite on the swings of the Shanghai stocks as it fell by 3% following the soft industrial production, fixed asset and retail sales from China over the weekend.
The euro's gain however, was met with eager sellers at 1.1370 as profit-taking took the rate back down to the 1.1330 support level which was consistent with last Friday's low in late NY.
The market focus remains on the FOMC decision on Thursday on the future course US interest rates. Expect to see sideways consolidation movement between 1.1400 - 1.1260.
Chart: WorldWideMarkets Alpha Trader