Investing.com - The euro strengthened against the dollar on Wednesday ahead of the European Central Bank's long-term refinancing program, under which the bank makes loans readily available to financial institutions to spur lending and economic activity.
In Asian trading on Wednesday, EUR/USD hit 1.3471, up 0.10%, gaining from a session low of 1.3456 and off from a high of 1.3480.
The pair was likely to test support at 1.3391, Tuesday's low, and resistance at 1.3486, Friday's high.
The ECB's second long-term refinancing operations makes three-year loans available to banks at attractive interest rates and collateral requirements.
The program aims to increase the value of assets like government debt in participating countries, which is bullish for the euro.
Market sentiment estimated the ECB making EUR500 billion available to banks through the low-cost loans.
Investors shrugged off stronger-than-expected consumer confidence figures out of the U.S.
The Conference Board reported its U.S. consumer confidence index jumped to a 12-month high in February, rising to 70.8 from 61.5 in January and far outpacing expectations for a gain to 63.0.
Meanwhile, the Commerce Department said U.S. orders for durable manufactured goods fell by the most in three years in January.
Durable goods orders dropped 4.0% in January after rising by 2.1% in December, far worse than forecasts for a 0.8% decline, while core durable goods orders, which are stripped of transportation items, fell 3.2% in January.
U.S. home prices fell more-than-expected in December, according to the Standard & Poor's Case-Shiller home-price index.
The euro was down against the pound as well as down against the yen, with EUR/GBP losing 0.04% to 0.8461 and EUR/JPY up 0.35% at 108.66.
Later Wednesday, the eurozone will release official data on French consumer spending and German unemployment changes, followed by a report on consumer price inflation in the single currency bloc.
Elsewhere, Finland’s parliament is to vote on Greece’s bailout, while the ECB is to launch its second refinancing operation.
The U.S. is to release a preliminary report on fourth-quarter GDP, the broadest measure of economic activity and the primary gauge of the economy’s health. The country is also to report on manufacturing activity in the Chicago area.
Also Wednesday, Federal Reserve Chairman Ben Bernanke is due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.
In Asian trading on Wednesday, EUR/USD hit 1.3471, up 0.10%, gaining from a session low of 1.3456 and off from a high of 1.3480.
The pair was likely to test support at 1.3391, Tuesday's low, and resistance at 1.3486, Friday's high.
The ECB's second long-term refinancing operations makes three-year loans available to banks at attractive interest rates and collateral requirements.
The program aims to increase the value of assets like government debt in participating countries, which is bullish for the euro.
Market sentiment estimated the ECB making EUR500 billion available to banks through the low-cost loans.
Investors shrugged off stronger-than-expected consumer confidence figures out of the U.S.
The Conference Board reported its U.S. consumer confidence index jumped to a 12-month high in February, rising to 70.8 from 61.5 in January and far outpacing expectations for a gain to 63.0.
Meanwhile, the Commerce Department said U.S. orders for durable manufactured goods fell by the most in three years in January.
Durable goods orders dropped 4.0% in January after rising by 2.1% in December, far worse than forecasts for a 0.8% decline, while core durable goods orders, which are stripped of transportation items, fell 3.2% in January.
U.S. home prices fell more-than-expected in December, according to the Standard & Poor's Case-Shiller home-price index.
The euro was down against the pound as well as down against the yen, with EUR/GBP losing 0.04% to 0.8461 and EUR/JPY up 0.35% at 108.66.
Later Wednesday, the eurozone will release official data on French consumer spending and German unemployment changes, followed by a report on consumer price inflation in the single currency bloc.
Elsewhere, Finland’s parliament is to vote on Greece’s bailout, while the ECB is to launch its second refinancing operation.
The U.S. is to release a preliminary report on fourth-quarter GDP, the broadest measure of economic activity and the primary gauge of the economy’s health. The country is also to report on manufacturing activity in the Chicago area.
Also Wednesday, Federal Reserve Chairman Ben Bernanke is due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.