Euro off four-month high - FT.com The euro pared gains on Monday morning after earlier hitting a fresh four-month high as risk-related currencies pulled back ahead of uncertainty over monetary easing plans in the US in the week ahead. The euro fell 0.3 per cent to $1.2773, having earlier hit a session high of $1.2813 as it continued to rise following a global risk rally sparked by the European Central Bank's plans to buy government bonds to help address the eurozone debt crisis outlined last Thursday. IN Currencies Currency analysts said that expectations the US Federal Reserve could announce monetary easing this week, following weak jobs figures highlighting the shaky US economy on Friday, would be the main driver of the forex market this week. A decision by the German constitutional court on whether to ratify the European Stability Mechanism (ESM), the eurozone's new bailout fund, on Wednesday was also seen as crucial for risk appetite. "If the ESM laws are upheld, the event will pass with only modest additional benefit for the euro and risk sentiment," said analysts at Credit Suisse. However, a ruling against the legislation would likely represent a major risk aversion and systemic stress event. The euro rose above SFr1.21 against the Swiss franc again on Monday, having pared some of its gains in the previous session, as pressure on the Swiss haven continued to abate following the ECB's action, which was widely seen as boosting confidence in the eurozone. However, analysts warned that pressure on Switzerland's ceiling - the level of SFr1.20 at which it defends the franc against the euro - could return. Some of the activity in the euro-franc pair in recent days has been driven by speculation the Swiss National Bank could raise its ceiling to SFr1.22. But most analysts view the SNB as unlikely to act before or when it meets on Thursday. Slowing eurozone activity, ECB rate cuts and slowing portfolio inflows into the eurozone suggest it's too early to expect a sustained euro rally. While the euro-franc could make it as high as 1.22 ahead of Thursday's SNB meeting, we expect it to be back at 1.20 heading into the fourth quarter," said Chris Turner, currency analyst at ING.