Forex - EUR/USD climbs to daily high ahead of ECB meeting

Published 12/02/2010, 02:40 AM
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Investing.com – The euro was up against the U.S. dollar on Thursday, advancing to a daily high, amid speculation that the European Central Bank was set to take decisive steps to combat market turmoil, ahead of a policy setting meeting.

EUR/USD hit 1.3164 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3156, gaining 0.12%.

The pair was likely to find support at 1.2970, Wednesday’s low and resistance at 1.3301, Monday’s high.

With the euro zone’s sovereign debt crisis threatening to reach Spain, speculation mounted the ECB would decide to expand its bond purchasing programs or delay the withdrawal of unlimited liquidity support for banks.

On Wednesday, The Wall Street Journal reported that Italy, Spain and Portugal have all pushed for strong and decisive action from the central bank.

Olli Rehn, the EU economic commissioner, said Wednesday that he was confident that the banks actions, with other measures, "could provide a sound basis for the continuation of actions of stabilization."

The euro was also up against the pound, with EUR/GBP rising 0.09% to hit 0.8418.

Later in the day, the ECB was to announce its benchmark interest rate. The announcement was to be followed by a press conference. The euro zone was also to release revised third quarter GDP data as well as a report on producer price inflation.

Meanwhile, the U.S. was to publish key weekly data on initial jobless claims as well as a report on pending home sales.

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