Investing.com – The euro extended gains against the U.S. dollar on Tuesday, surging to an 7-month high, as concerns that the Federal Reserve may implement further quantitative easing in the coming months continued to weigh on the dollar.
EUR/USD hit 1.3812 during European afternoon trade, the pair’s highest since March 17; the pair subsequently consolidated at 1.3802, soaring 0.85%.
The pair was likely to find support at 1.3618, Friday's low and short-term resistance at 1.3901, the high of February 4.
Late Monday, while addressing a forum in Rhode Island Fed chair Ben Bernanke said that that the central bank’s first round of large-scale asset purchases improved the economy and that further buying will probably help more.
“The additional purchases -- although we don’t have precise numbers for how big the effects are -- I do think they have the ability to ease financial conditions,” Bernanke said.
The euro was also up against the pound, with EUR/GBP gaining 0.43% to hit 0.8684.
Earlier in the day, official data showed that euro zone retail sales fell unexpectedly in August while a seperate report showed that the euro-zone purchasing managers' index for service industries was revised up to 54.1 from 53.8.
EUR/USD hit 1.3812 during European afternoon trade, the pair’s highest since March 17; the pair subsequently consolidated at 1.3802, soaring 0.85%.
The pair was likely to find support at 1.3618, Friday's low and short-term resistance at 1.3901, the high of February 4.
Late Monday, while addressing a forum in Rhode Island Fed chair Ben Bernanke said that that the central bank’s first round of large-scale asset purchases improved the economy and that further buying will probably help more.
“The additional purchases -- although we don’t have precise numbers for how big the effects are -- I do think they have the ability to ease financial conditions,” Bernanke said.
The euro was also up against the pound, with EUR/GBP gaining 0.43% to hit 0.8684.
Earlier in the day, official data showed that euro zone retail sales fell unexpectedly in August while a seperate report showed that the euro-zone purchasing managers' index for service industries was revised up to 54.1 from 53.8.