Forex - EUR/USD firms up ahead of EU summit

Published 12/16/2010, 02:28 AM
EUR/USD
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EUR/GBP
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Investing.com – The euro firmed up against the U.S. dollar on Thursday, ahead of an EU summit to discuss the euro zone debt crisis as trade remained choppy in the run-up to the year end.

EUR/USD hit 1.3236 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3226, easing up 0.09%.

The pair was likely to find short-term support at 1.3164, the low of December 9 and resistance at 1.3381, Wednesday’s high.

EU leaders were to meet in Brussels on Thursday and Friday to discuss the next step in dealing with the debt crisis and how to stop it spreading. 

Spain was also due to auction up to EUR3 billion of 2020 and 2025 bonds later in the day.

On Wednesday, ratings agency Moody’s put Spain's Aa1 sovereign credit rating on review for a possible downgrade, citing its high funding needs, doubts over its banking sector and concerns surrounding regional finances.

Meanwhile, the euro was slightly lower against the pound, with EUR/GBP slipping 0.03% to hit 0.8496.

Later Thursday, the euro zone was to publish data on consumer price inflation, while the U.S. was to publish a key weekly report on initial jobless claims, as well as data on building permits, housing starts and manufacturing activity in Philadelphia.

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