Investing.com – The broadly stronger euro extened gains against the U.S. dollar on Thursday, rising to a fresh seven-week high after European Union leaders reached an agreement on a deal to tackle the debt crisis in the euro zone, bolstering risk appetite.
EUR/USD hit 1.4047 during European afternoon trade, the pair’s highest since September 8; the pair subsequently consolidated at 1.4043, jumping 0.99%.
The pair was likely to find support at 1.3863, the days low and resistance at 1.4098, the high of September 8.
Following Wednesday’s EU summit, French President Nicolas Sarkozy said talks with private-sector lenders had produced a "durable solution" to the Greek crisis, with an agreement for private bondholders to accept a 50% writedown on their Greek debt.
The deal will reduce Greece’s debt burden from 160% of GDP to 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.
The euro was also sharply higher against the pound, with EUR/GBP surging 0.77% to hit 0.8771.
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 1.4047 during European afternoon trade, the pair’s highest since September 8; the pair subsequently consolidated at 1.4043, jumping 0.99%.
The pair was likely to find support at 1.3863, the days low and resistance at 1.4098, the high of September 8.
Following Wednesday’s EU summit, French President Nicolas Sarkozy said talks with private-sector lenders had produced a "durable solution" to the Greek crisis, with an agreement for private bondholders to accept a 50% writedown on their Greek debt.
The deal will reduce Greece’s debt burden from 160% of GDP to 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.
The euro was also sharply higher against the pound, with EUR/GBP surging 0.77% to hit 0.8771.
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.