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Forex – EUR/USD edges higher, just off 15-month high

Published 04/13/2011, 02:35 AM
EUR/USD
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EUR/GBP
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Investing.com – The euro edged higher against the U.S. dollar on Wednesday, hovering just below Tuesday’s 15-month high, as the single currency remained supported by the outlook for further euro zone rate hikes this year.

EUR/USD hit 1.4498 during late Asian trade; the daily high; the pair subsequently consolidated at 1.4488, edging up 0.08%.

The pair was likely to find support at 1.4376, Tuesday’s low and short-term resistance at 1.4518, Tuesday’s high and a 15-month high.

Last week, the European Central Bank raised the main refinancing rate to 1.25% from a record low 1%, where it had been since 2009, and left the door open for further increases.

The euro has rallied against the dollar this year; boosted by speculation the U.S. Federal Reserve will lag the ECB in tightening policy.

On Tuesday, Fed Bank of New York President William C. Dudley the U.S. economy was “far away” from what the central bank aims for on employment and job creation.

The euro was almost unchanged against the pound, with EUR/GBP easing up 0.01% to hit 0.8906.

Later in the day, the euro zone was to publish official data on industrial production. Also Wednesday, the U.S. was to publish government data on retail sales, while the Federal Reserve was to publish its Beige Book.

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