Investing.com – The euro extended gains against the U.S. dollar on Thursday, rising to a fresh daily high, as expectations grew that the European Central Bank would take fresh steps to calm fears over the debt crisis engulfing the euro zone.
EUR/USD hit 1.3217 during European morning trade, the daily high, the pair subsequently consolidated at 1.3189, gaining 0.38%.
The pair was likely to find support at 1.2970, Wednesday’s low and resistance at 1.3301, Monday’s high.
As the debt crisis in the euro zone stoked fears of contagion, expectations mounted that the ECB would announce plans to keep unlimited liquidity support for banks in place for longer or step up bond purchases after its policy meeting on Thursday.
The single currency was also boosted after Spain successfully auctioned EUR 2.5 billion of Treasury bills, in the country’s first bond auction since Ireland’s bailout.
After the country’s borrowing costs rose to record highs in recent days Spain reduced the size of the auction as Finance Minister Elena Salgado said the country was already financed to the end of the year.
The euro was also up against the pound, with EUR/GBP rising 0.34% to hit 0.8438.
Later in the day, the ECB was to announce its benchmark interest rate. The announcement was to be followed by a press conference. Also Thursday, the U.S. was to publish key weekly data on initial jobless claims as well as a report on pending home sales.
EUR/USD hit 1.3217 during European morning trade, the daily high, the pair subsequently consolidated at 1.3189, gaining 0.38%.
The pair was likely to find support at 1.2970, Wednesday’s low and resistance at 1.3301, Monday’s high.
As the debt crisis in the euro zone stoked fears of contagion, expectations mounted that the ECB would announce plans to keep unlimited liquidity support for banks in place for longer or step up bond purchases after its policy meeting on Thursday.
The single currency was also boosted after Spain successfully auctioned EUR 2.5 billion of Treasury bills, in the country’s first bond auction since Ireland’s bailout.
After the country’s borrowing costs rose to record highs in recent days Spain reduced the size of the auction as Finance Minister Elena Salgado said the country was already financed to the end of the year.
The euro was also up against the pound, with EUR/GBP rising 0.34% to hit 0.8438.
Later in the day, the ECB was to announce its benchmark interest rate. The announcement was to be followed by a press conference. Also Thursday, the U.S. was to publish key weekly data on initial jobless claims as well as a report on pending home sales.