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Forex - EUR/USD close to16-month high after Bernanke remarks

Published 04/28/2011, 06:49 AM
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Investing.com – The euro held gains against the U.S. dollar on Thursday, trading close to a 16-month high after Federal Reserve Chairman Ben Bernanke indicated that the bank would not be tightening monetary policy for some time.

EUR/USD hit 1.4882 during European late morning trade, the pair’s highest since December 12, 2009; the pair subsequently consolidated at 1.4824, gaining 0.25%.

The pair was likely to find support at 1.4631, Wednesday’s low and resistance at 1.5090, the high of December 4, 2009.

On Wednesday, Bernanke said that the central bank, which left interest rates unchanged, "will complete" its USD600 billion bond-buying program by the end of June but indicated that the Fed was in no rush to tighten monetary policy with the jobs market still in a "very, very deep hole."

Earlier Thursday, Germany’s federal labor agency said the number of persons actively searching for work fell by a seasonally adjusted 37,000, lowering the overall level to 2.9 million, its lowest point since June 1992.

The seasonally-adjusted unemployment rate was unchanged at a record low of 7.1%, its lowest point since figures for a unified Germany were first published two decades ago.

The euro was also higher against the pound, with EUR/GBP easing up 0.06% to hit 0.8897.

Later in the day, the U.S. was to publish advance data on first quarter gross domestic product, as well as official data on initial jobless claims.


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