Investing.com – The euro hit a four-month high against the U.S. dollar on Monday, as the view that the European Central Bank would raise interest rates in spite of the ongoing nuclear crisis in Japan and tensions in the Middle East and Libya supported the single currency.
EUR/USD hit 1.4195 during European afternoon trade, the pair’s highest since November 5; the pair subsequently consolidated at 1.4190, easing up 0.06%.
The pair was likely to find support at 1.3979, Friday’s low and short-term resistance at 1.4281, the high of November 5.
On Friday, ECB President Jean-Claude Trichet said he would "be thinking deeply" about the impact of Japan's nuclear crisis on the world economy in the coming days but reiterated that the bank was "extremely attentive" on anchoring inflation expectations.
Sentiment was boosted after Japanese authorities said earlier that they were making progress in cooling damaged reactors at the stricken Fukushima Daiichi nuclear power plant, 155 miles north of Tokyo.
However, oil prices climbed Monday as ongoing military action in Libya and unrest in the Middle East sparked renewed fears over disruption to supplies.
The euro was also higher against the yen, with EUR/JPY rising 0.54% to hit 114.89.
Later in the day, Jean-Claude Trichet was to speak at a public engagement, while the U.S. was to publish a government report on existing home sales.
EUR/USD hit 1.4195 during European afternoon trade, the pair’s highest since November 5; the pair subsequently consolidated at 1.4190, easing up 0.06%.
The pair was likely to find support at 1.3979, Friday’s low and short-term resistance at 1.4281, the high of November 5.
On Friday, ECB President Jean-Claude Trichet said he would "be thinking deeply" about the impact of Japan's nuclear crisis on the world economy in the coming days but reiterated that the bank was "extremely attentive" on anchoring inflation expectations.
Sentiment was boosted after Japanese authorities said earlier that they were making progress in cooling damaged reactors at the stricken Fukushima Daiichi nuclear power plant, 155 miles north of Tokyo.
However, oil prices climbed Monday as ongoing military action in Libya and unrest in the Middle East sparked renewed fears over disruption to supplies.
The euro was also higher against the yen, with EUR/JPY rising 0.54% to hit 114.89.
Later in the day, Jean-Claude Trichet was to speak at a public engagement, while the U.S. was to publish a government report on existing home sales.