Investing.com - The euro extended gains against the U.S. dollar on Thursday, advancing to a two-month high after Greek political leaders agreed on an austerity package, paving the way for a second bailout deal to keep it from a default next month.
EUR/USD hit 1.3320 during U.S. morning trade, the pair’s highest since December 12; the pair subsequently consolidated at 1.3301, gaining 0.31%.
The pair was likely to find support at 1.3088, Wednesday’s low and resistance at 1.3433, the high of December 9.
The euro strengthened broadly after a spokesman for Greek Prime Minister Lucas Papademos said an agreement on the conditions set by international creditors in exchange for a new bailout worth EUR130 billion had been reached.
Greek Finance Minister Evangelos Venizelos was expected to present the details of the agreement for discussion at a meeting of euro zone finance ministers later in the day.
Earlier in the day, the European Central Bank left its benchmark interest rate unchanged at a record-low 1.0% for the second consecutive month, in a widely expected decision.
Speaking at the bank’s post-policy meeting press conference, ECB President Mario Draghi said collateral rules will be relaxed in order to ease credit conditions in the region.
Mr. Draghi also said the central bank would not accept a loss on its holdings of Greek bonds, but stopped short of ruling out a role for the ECB in a new bailout package for Greece.
The euro was also higher against the pound and the yen, with EUR/GBP easing up 0.13% to hit 0.8394 and EUR/JPY advancing 0.65% to hit 102.83.
Also Thursday, official data showed that U.S. jobless claims fell to an almost four-year low last week.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 15,000 to a seasonally adjusted 358,000, beating expectations for a decline to 370,000.
The previous week’s figure was revised up to 373,000 from 367,000.
Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 13 of the past 15 weeks.
EUR/USD hit 1.3320 during U.S. morning trade, the pair’s highest since December 12; the pair subsequently consolidated at 1.3301, gaining 0.31%.
The pair was likely to find support at 1.3088, Wednesday’s low and resistance at 1.3433, the high of December 9.
The euro strengthened broadly after a spokesman for Greek Prime Minister Lucas Papademos said an agreement on the conditions set by international creditors in exchange for a new bailout worth EUR130 billion had been reached.
Greek Finance Minister Evangelos Venizelos was expected to present the details of the agreement for discussion at a meeting of euro zone finance ministers later in the day.
Earlier in the day, the European Central Bank left its benchmark interest rate unchanged at a record-low 1.0% for the second consecutive month, in a widely expected decision.
Speaking at the bank’s post-policy meeting press conference, ECB President Mario Draghi said collateral rules will be relaxed in order to ease credit conditions in the region.
Mr. Draghi also said the central bank would not accept a loss on its holdings of Greek bonds, but stopped short of ruling out a role for the ECB in a new bailout package for Greece.
The euro was also higher against the pound and the yen, with EUR/GBP easing up 0.13% to hit 0.8394 and EUR/JPY advancing 0.65% to hit 102.83.
Also Thursday, official data showed that U.S. jobless claims fell to an almost four-year low last week.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 15,000 to a seasonally adjusted 358,000, beating expectations for a decline to 370,000.
The previous week’s figure was revised up to 373,000 from 367,000.
Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 13 of the past 15 weeks.