Investing.com - The euro was trading close to a seven-week high against the U.S. dollar on Thursday, as investors looked to a speech by Federal Reserve Chairman Ben Bernanke on Friday for any indication that the U.S. central bank is considering a third round of easing.
EUR/USD hit 1.2564 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.2558, gaining 0.23%.
The pair was likely to find support at 1.2464, Tuesday’s low and resistance at 1.2588, the high of August 23 and a seven-week high.
Market sentiment remained fragile ahead of Bernanke’s speech at a symposium in Jackson Hole, Wyoming, amid ongoing speculation over how close the Fed may be to implementing more economic stimulus measures.
The greenback showed little reaction to official data showing that the number of people who filed for unemployment assistance in the U.S. last week held steady at 374,000, compared to expectations for a decline of 4,000.
A separate report showed that personal income in the U.S. rose by 0.3% in July, matching forecasts, after rising by a revised 0.3% in June. Personal spending rose 0.4%, in line with expectations after a flat reading in June.
In the euro zone, Italy saw borrowing costs ease at an auction of five and 10-year bonds earlier, reflecting expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets ahead of its upcoming meeting on September 6.
Italy’s Treasury auctioned EUR4 billion of 10-year bonds at an average yield of 5.82%, down from 5.96% last month and the lowest level since March.
Italy sold a further EUR2.5 billion of five-year bonds at an average yield of 4.73%, down from 5.29% last month, also the lowest rate since March.
The euro was almost unchanged against the pound and the yen, with EUR/GBP inching up 0.04% to 0.7917 and EUR/JPY edging up 0.01% to 98.62.
Earlier Thursday, Chinese Premier Wen Jiabao warned that the euro zone crisis is worsening, but added that China would to continue to buy euro zone government bonds after fully assessing risks.
EUR/USD hit 1.2564 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.2558, gaining 0.23%.
The pair was likely to find support at 1.2464, Tuesday’s low and resistance at 1.2588, the high of August 23 and a seven-week high.
Market sentiment remained fragile ahead of Bernanke’s speech at a symposium in Jackson Hole, Wyoming, amid ongoing speculation over how close the Fed may be to implementing more economic stimulus measures.
The greenback showed little reaction to official data showing that the number of people who filed for unemployment assistance in the U.S. last week held steady at 374,000, compared to expectations for a decline of 4,000.
A separate report showed that personal income in the U.S. rose by 0.3% in July, matching forecasts, after rising by a revised 0.3% in June. Personal spending rose 0.4%, in line with expectations after a flat reading in June.
In the euro zone, Italy saw borrowing costs ease at an auction of five and 10-year bonds earlier, reflecting expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets ahead of its upcoming meeting on September 6.
Italy’s Treasury auctioned EUR4 billion of 10-year bonds at an average yield of 5.82%, down from 5.96% last month and the lowest level since March.
Italy sold a further EUR2.5 billion of five-year bonds at an average yield of 4.73%, down from 5.29% last month, also the lowest rate since March.
The euro was almost unchanged against the pound and the yen, with EUR/GBP inching up 0.04% to 0.7917 and EUR/JPY edging up 0.01% to 98.62.
Earlier Thursday, Chinese Premier Wen Jiabao warned that the euro zone crisis is worsening, but added that China would to continue to buy euro zone government bonds after fully assessing risks.