Investing.com - The euro extended gains against the U.S. dollar on Thursday, following comments by European Central Bank President Mario Draghi and globally positive U.S. economic reports.
EUR/USD hit 1.3668 during U.S. morning trade, the pair's highest since October 31; the pair subsequently consolidated at 1.3652, gaining 0.43%.
The pair was likely to find support at 1.3524, the low of December 3 and resistance at 1.3682, the high of October 17.
Speaking after the ECB's monthly policy meeting, Mario Draghi said that the bank's policy stance was to remain accomodative for as long as necessary and that key interest rates are likely to
remain at current or lower levels for an extended period of time.
Mr. Draghi added that the euro zone could experience a prolonged period of low inflation before the rate moves upwards close to the 2% target.
The ECB president also the bank held 2013 growth expectations at -0.4% and raised the 2014 forecast to 1.1% expansion from 1%.
The comments came after the ECB held its benchmark interest rate at 0.25%, as expected.
Meanwhile, the greenback remained supported after the U.S. Commerce Department said gross domestic product increased at a seasonally adjusted annual rate of 3.6% in the three months to September, above expectations for growth of 3.0% and up from a preliminary estimate of 2.8%.
Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 23,000 to a seasonally adjusted 298,000, from 321,000 in the previous week whose figure was revised up from 316,000.
Analysts had expected initial jobless claims to rise to 325,000 last week.
Official data also showed that U.S. factory oders fell 0.9% in October, less than the expected 1% decline, after an upwardly revised 1.8% increase the previous month.
The euro was also sharply higher against the pound, with EUR/GBP advancing 0.87% to 0.8372.
Also Thursday, the Bank of England's monetary policy committee voted to leave rates on hold at 0.5% and made no changes to the GBP375 billion quantitative easing stimulus package.
The announcement came after U.K. Chancellor of the Exchequer George Oborne said, in his Autumn Forecast Statement, that "Britain's economic plan is working", and he raised growth forecasts to 1.4% this year and 2.4% in 2014.
EUR/USD hit 1.3668 during U.S. morning trade, the pair's highest since October 31; the pair subsequently consolidated at 1.3652, gaining 0.43%.
The pair was likely to find support at 1.3524, the low of December 3 and resistance at 1.3682, the high of October 17.
Speaking after the ECB's monthly policy meeting, Mario Draghi said that the bank's policy stance was to remain accomodative for as long as necessary and that key interest rates are likely to
remain at current or lower levels for an extended period of time.
Mr. Draghi added that the euro zone could experience a prolonged period of low inflation before the rate moves upwards close to the 2% target.
The ECB president also the bank held 2013 growth expectations at -0.4% and raised the 2014 forecast to 1.1% expansion from 1%.
The comments came after the ECB held its benchmark interest rate at 0.25%, as expected.
Meanwhile, the greenback remained supported after the U.S. Commerce Department said gross domestic product increased at a seasonally adjusted annual rate of 3.6% in the three months to September, above expectations for growth of 3.0% and up from a preliminary estimate of 2.8%.
Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 23,000 to a seasonally adjusted 298,000, from 321,000 in the previous week whose figure was revised up from 316,000.
Analysts had expected initial jobless claims to rise to 325,000 last week.
Official data also showed that U.S. factory oders fell 0.9% in October, less than the expected 1% decline, after an upwardly revised 1.8% increase the previous month.
The euro was also sharply higher against the pound, with EUR/GBP advancing 0.87% to 0.8372.
Also Thursday, the Bank of England's monetary policy committee voted to leave rates on hold at 0.5% and made no changes to the GBP375 billion quantitative easing stimulus package.
The announcement came after U.K. Chancellor of the Exchequer George Oborne said, in his Autumn Forecast Statement, that "Britain's economic plan is working", and he raised growth forecasts to 1.4% this year and 2.4% in 2014.