Investing.com – The euro advanced against the U.S. dollar on Thursday, nearing a 2-week high, after upbeat comments from European Central Bank President eased some concerns over euro zone economic growth.
EUR/USD hit 1.2849 during European afternoon trade, a fresh daily high; the pair subsequently consolidated at 1.2821, gaining 0.09%.
The pair is likely to find support at 1.2625, the low of August 31, and resistance at 1.2921, the high of August 18.
Earlier in the day, the Governing Council of the European Central Bank decided to keep its benchmark interest rate unchanged at 1.0% in September, in line with expectations.
The ECB said that it also planned to further extend a stimulus measure intended to aid banks by prolonging its unlimited liquidity offerings into 2011.
Meanwhile, the central bank revised its outlook for euro-zone growth, expecting its economy to expand in a range between 1.4% and 1.8% in 2010 and in a range between 0.5% and 2.3% in 2011.
Speaking at a press conference following the announcement, ECB President Jean-Claude Trichet said that a double-dip recession in the euro zone is “not in the cards”, while adding that "the recovery should proceed at a moderate pace with uncertainty still prevailing".
The euro was also up against the pound, with EUR/GBP gaining 0.51% to hit 0.8330.
Earlier Thursday, official U.S. data showed that the number of individuals filing for initial jobless benefits last week fell unexpectedly.
EUR/USD hit 1.2849 during European afternoon trade, a fresh daily high; the pair subsequently consolidated at 1.2821, gaining 0.09%.
The pair is likely to find support at 1.2625, the low of August 31, and resistance at 1.2921, the high of August 18.
Earlier in the day, the Governing Council of the European Central Bank decided to keep its benchmark interest rate unchanged at 1.0% in September, in line with expectations.
The ECB said that it also planned to further extend a stimulus measure intended to aid banks by prolonging its unlimited liquidity offerings into 2011.
Meanwhile, the central bank revised its outlook for euro-zone growth, expecting its economy to expand in a range between 1.4% and 1.8% in 2010 and in a range between 0.5% and 2.3% in 2011.
Speaking at a press conference following the announcement, ECB President Jean-Claude Trichet said that a double-dip recession in the euro zone is “not in the cards”, while adding that "the recovery should proceed at a moderate pace with uncertainty still prevailing".
The euro was also up against the pound, with EUR/GBP gaining 0.51% to hit 0.8330.
Earlier Thursday, official U.S. data showed that the number of individuals filing for initial jobless benefits last week fell unexpectedly.