Investing.com – The euro extended gains against the U.S. dollar on Monday, advancing to a three-day high, as expectations that the U.S. Senate would pass a deal to raise the country’s debt ceiling boosted market sentiment.
EUR/USD hit 1.4453 during European early afternoon trade, the pair’s highest since July 27; the pair subsequently consolidated at 1.4437, gaining 0.28%.
The pair was likely to find support at 1.4253, the low of July 28 and resistance at 1.4535, the high of July 27 and an almost one-month high.
U.S. President Barack Obama and Senate leaders announced Sunday night that they had reached agreement on a framework deal that will cut spending and raise the USD14.3 trillion federal debt ceiling, in order to avert a U.S. default.
The Senate was expected to pass the deal, which cuts about USD2.4 trillion from the deficit over the next decade, in a vote later Monday.
However, lingering worries that the U.S. sovereign rating could still be downgraded, as well as concerns about the outlook for U.S. economic growth still weighed.
The euro was also higher against the pound, with EUR/GBP rising 0.30% to hit 0.8790.
Also Monday, official data showed that the euro zone’s unemployment rate remained unchanged at 9.9% in June, holding steady for the fourth consecutive month.
EUR/USD hit 1.4453 during European early afternoon trade, the pair’s highest since July 27; the pair subsequently consolidated at 1.4437, gaining 0.28%.
The pair was likely to find support at 1.4253, the low of July 28 and resistance at 1.4535, the high of July 27 and an almost one-month high.
U.S. President Barack Obama and Senate leaders announced Sunday night that they had reached agreement on a framework deal that will cut spending and raise the USD14.3 trillion federal debt ceiling, in order to avert a U.S. default.
The Senate was expected to pass the deal, which cuts about USD2.4 trillion from the deficit over the next decade, in a vote later Monday.
However, lingering worries that the U.S. sovereign rating could still be downgraded, as well as concerns about the outlook for U.S. economic growth still weighed.
The euro was also higher against the pound, with EUR/GBP rising 0.30% to hit 0.8790.
Also Monday, official data showed that the euro zone’s unemployment rate remained unchanged at 9.9% in June, holding steady for the fourth consecutive month.