Investing.com – The euro extended gains against its U.S. counterpart on Wednesday, rising to hit a fresh daily high markets steadied following China’s unexpected interest rate increase on Tuesday.
EUR/USD hit 1.3848 during European early afternoon trade, a fresh daily high; the pair subsequently consolidated at 1.3844, surging 0.86%.
The pair was likely to find support at 1.3636, the low of October 5 and resistance at 1.4002, Tuesday’s high.
On Tuesday, the People’s Bank of China said it had raised its benchmark interest rate for the first time since December 2007. The move triggered widespread risk aversion amid fears over a slowdown in the rate of global economic growth.
The euro was also down against the pound, with EUR/GBP gaining 0.65% to hit 0.8796.
Also Tuesday, three regional Federal Reserve presidents reinforced that the central bank will begin a second round of asset purchases with two saying asset purchases must be big enough to aid the economy.
EUR/USD hit 1.3848 during European early afternoon trade, a fresh daily high; the pair subsequently consolidated at 1.3844, surging 0.86%.
The pair was likely to find support at 1.3636, the low of October 5 and resistance at 1.4002, Tuesday’s high.
On Tuesday, the People’s Bank of China said it had raised its benchmark interest rate for the first time since December 2007. The move triggered widespread risk aversion amid fears over a slowdown in the rate of global economic growth.
The euro was also down against the pound, with EUR/GBP gaining 0.65% to hit 0.8796.
Also Tuesday, three regional Federal Reserve presidents reinforced that the central bank will begin a second round of asset purchases with two saying asset purchases must be big enough to aid the economy.