Investing.com – The euro edged higher against the U.S. dollar on Thursday, after the Federal Reserve held interest rates steady and repeated that rates would remain exceptionally low for an extended period.
EUR/USD hit 1.3728 during late Asian trade, the pair’s highest since November 22; the pair subsequently consolidated at 1.3718, gaining 0.06%.
The pair was likely to find support at 1.3571, Tuesday’s low and resistance at 1.3785, the high of November 22.
The Fed kept interest rates unchanged at 0.25% and said it will see its USD600 billion bond-purchasing plan through to completion in June.
In its rate statement the bank said,” Economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions".
Meanwhile, the euro remained supported after European Central Bank President Jean-Claude Trichet warned about the need to avoid second-round inflation effects on Wednesday, highlighting concerns about rising food and commodity prices feeding through into wages.
The euro also edged higher against the pound, with EUR/GBP easing up 0.08% to hit 0.8612.
Later in the day, the U.S. was to publish official data on initial jobless claims, as well as reports on durable goods orders and pending home sales.
EUR/USD hit 1.3728 during late Asian trade, the pair’s highest since November 22; the pair subsequently consolidated at 1.3718, gaining 0.06%.
The pair was likely to find support at 1.3571, Tuesday’s low and resistance at 1.3785, the high of November 22.
The Fed kept interest rates unchanged at 0.25% and said it will see its USD600 billion bond-purchasing plan through to completion in June.
In its rate statement the bank said,” Economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions".
Meanwhile, the euro remained supported after European Central Bank President Jean-Claude Trichet warned about the need to avoid second-round inflation effects on Wednesday, highlighting concerns about rising food and commodity prices feeding through into wages.
The euro also edged higher against the pound, with EUR/GBP easing up 0.08% to hit 0.8612.
Later in the day, the U.S. was to publish official data on initial jobless claims, as well as reports on durable goods orders and pending home sales.