Investing.com – The euro rose to a seven-week high against the U.S. dollar on Thursday, after European leaders reached an agreement with banks to take a ‘voluntary’ 50% loss on the face value of their Greek debt.
EUR/USD hit 1.4038 during late Asian trade, the pair’s highest since September 8; the pair subsequently consolidated at 1.4002, gaining 0.68%.
The pair was likely to find support at 1.3863, the days low and resistance at 1.4098, the high of September 8.
The agreement on Greek debt was critical to assembling a package of measures to contain the debt crisis in the euro zone. The writedown will reduce Greece’s debt burden from 160% of GDP to a more sustainable 120% by 2020.
Leaders also agreed to expand the firepower of the euro zone's bailout fund, the European Financial Stability Facility, but the final details on how to enlarge the fund were not expected to be agreed until November.
German Chancellor Angela Merkel said she was "very satisfied" with the outcome.
The euro was also higher against the pound, with EUR/GBP climbing 0.58% to hit 0.8754.
Later in the day, the U.S. was to publish preliminary data on third quarter GDP, as well as the GDP price index, the broadest measure of inflation. The country was also to publish its weekly data on initial jobless claims.
EUR/USD hit 1.4038 during late Asian trade, the pair’s highest since September 8; the pair subsequently consolidated at 1.4002, gaining 0.68%.
The pair was likely to find support at 1.3863, the days low and resistance at 1.4098, the high of September 8.
The agreement on Greek debt was critical to assembling a package of measures to contain the debt crisis in the euro zone. The writedown will reduce Greece’s debt burden from 160% of GDP to a more sustainable 120% by 2020.
Leaders also agreed to expand the firepower of the euro zone's bailout fund, the European Financial Stability Facility, but the final details on how to enlarge the fund were not expected to be agreed until November.
German Chancellor Angela Merkel said she was "very satisfied" with the outcome.
The euro was also higher against the pound, with EUR/GBP climbing 0.58% to hit 0.8754.
Later in the day, the U.S. was to publish preliminary data on third quarter GDP, as well as the GDP price index, the broadest measure of inflation. The country was also to publish its weekly data on initial jobless claims.