Investing.com – The euro extended gains against the U.S. dollar on Monday, rising to a fresh 5-day high, as risk sentiment was boosted after the European Commission raised it forecast of growth for the euro zone for 2010.
EUR/USD hit 1.2878 during European afternoon trade, the pair's highest since September 7; the pair subsequently consolidated at 1.2876, soaring 1.58%.
The pair was likely to find support at 1.2643, last Friday's low and resistance at 1.2917, the high of September 6.
Earlier in the day, the European Commission raised its growth forecast for the euro zone and the wider European Union for 2010, saying in a report that strong growth in industrial exports is driving a faster-than-expected recovery from the recent global economic crisis.
The EC said it now expected the region’s economy to expand by 1.7%, up from a previous estimate of 0.9%.
Commenting on the report, Olli Rehn, the EU's economic and monetary affairs commissioner said "This gives reason for cautious optimism, despite a more uncertain global environment."
The euro was also up against the pound, with EUR/GBP gaining 1.00% to hit 0.8336.
Later in the day, the U.S. was to release official data on its federal budget balance.
EUR/USD hit 1.2878 during European afternoon trade, the pair's highest since September 7; the pair subsequently consolidated at 1.2876, soaring 1.58%.
The pair was likely to find support at 1.2643, last Friday's low and resistance at 1.2917, the high of September 6.
Earlier in the day, the European Commission raised its growth forecast for the euro zone and the wider European Union for 2010, saying in a report that strong growth in industrial exports is driving a faster-than-expected recovery from the recent global economic crisis.
The EC said it now expected the region’s economy to expand by 1.7%, up from a previous estimate of 0.9%.
Commenting on the report, Olli Rehn, the EU's economic and monetary affairs commissioner said "This gives reason for cautious optimism, despite a more uncertain global environment."
The euro was also up against the pound, with EUR/GBP gaining 1.00% to hit 0.8336.
Later in the day, the U.S. was to release official data on its federal budget balance.