Investing.com – The euro extended earlier gains against the U.S. dollar on Wednesday, rising to a fresh daily high, but gains were limited as the euro struggled to break a key resistance level at 1.40.
EUR/USD hit 1.4002 during European afternoon trade, a fresh daily high; the pair subsequently consolidated at 1.3975, gaining 0.36%.
The pair was likely to find support at 1.3774, Tuesday’s low and short-term resistance at 1.4028, the high of October 7.
Earlier in the day, official data showed that industrial production in the euro zone rose more-than-expected in August. In a report, Eurostat said industrial production rose by a seasonally adjusted 1.0% in August, after advancing by a revised 0.1% in July. Analysts had expected industrial production to increase by 0.7% in August.
The report supported remarks by European Central Bank Governing Council member Axel Weber, who said Tuesday that the risk of recession in Europe is “negligible” and that the central bank's bond purchase program "should now be phased out permanently".
The euro was also up against the pound, with EUR/GBP gaining 0.12% to hit 0.8819.
On Tuesday, the minutes of the September 21 meeting of the Federal Reserve policy setting committee showed that "many participants" believed "it would be appropriate to provide additional monetary policy accommodation" if unemployment remained too high or inflation too low.
EUR/USD hit 1.4002 during European afternoon trade, a fresh daily high; the pair subsequently consolidated at 1.3975, gaining 0.36%.
The pair was likely to find support at 1.3774, Tuesday’s low and short-term resistance at 1.4028, the high of October 7.
Earlier in the day, official data showed that industrial production in the euro zone rose more-than-expected in August. In a report, Eurostat said industrial production rose by a seasonally adjusted 1.0% in August, after advancing by a revised 0.1% in July. Analysts had expected industrial production to increase by 0.7% in August.
The report supported remarks by European Central Bank Governing Council member Axel Weber, who said Tuesday that the risk of recession in Europe is “negligible” and that the central bank's bond purchase program "should now be phased out permanently".
The euro was also up against the pound, with EUR/GBP gaining 0.12% to hit 0.8819.
On Tuesday, the minutes of the September 21 meeting of the Federal Reserve policy setting committee showed that "many participants" believed "it would be appropriate to provide additional monetary policy accommodation" if unemployment remained too high or inflation too low.