Investing.com – The euro extended gains against the U.S. dollar on Monday, advancing to a seven-day high as risk appetite recovered after European leaders promised a fresh set of measures to address the debt crisis in the euro zone by the end of the month.
EUR/USD hit 1.3604 during European early afternoon trade, the pair’s highest since September 29; the pair subsequently consolidated at 1.3582, surging 1.53%.
The pair was likely to find support at 1.3360, last Friday’s low and resistance at 1.3678, the high of September 29.
Speaking after talks in Berlin on Sunday, German Chancellor Angela Merkel and French President Nicolas Sarkozy said that they will present a "comprehensive" package of new measures to contain the debt crisis in the single currency bloc.
The measures are believed to include plans to recapitalize European banks and find a resolution to Greece’s debt crisis, as well as proposals to coordinate budget policies between euro zone member states.
Investors remained wary as few details of the plan were outlined, but Mr. Sarkozy said Europe should resolve its problems before the G20 summit due to be held in France in early November.
The euro was also higher against the pound, with EUR/GBP jumping 0.95% to hit 0.8679.
Also Monday, troubled Franco-Belgian lender Dexia agreed to the nationalization of its Belgian banking division, following fears that it could go bankrupt.
After the announcement, French Finance Minister Francois Baroin said he did not think any more banks would need to be bailed out.
EUR/USD hit 1.3604 during European early afternoon trade, the pair’s highest since September 29; the pair subsequently consolidated at 1.3582, surging 1.53%.
The pair was likely to find support at 1.3360, last Friday’s low and resistance at 1.3678, the high of September 29.
Speaking after talks in Berlin on Sunday, German Chancellor Angela Merkel and French President Nicolas Sarkozy said that they will present a "comprehensive" package of new measures to contain the debt crisis in the single currency bloc.
The measures are believed to include plans to recapitalize European banks and find a resolution to Greece’s debt crisis, as well as proposals to coordinate budget policies between euro zone member states.
Investors remained wary as few details of the plan were outlined, but Mr. Sarkozy said Europe should resolve its problems before the G20 summit due to be held in France in early November.
The euro was also higher against the pound, with EUR/GBP jumping 0.95% to hit 0.8679.
Also Monday, troubled Franco-Belgian lender Dexia agreed to the nationalization of its Belgian banking division, following fears that it could go bankrupt.
After the announcement, French Finance Minister Francois Baroin said he did not think any more banks would need to be bailed out.