Investing.com - The euro gained against the U.S. dollar Thursday, after Greek leaders agreed on an austerity package to qualify for a second economic bailout package.
EUR/USD traded at a low of 1.3215 and hit a high of 1.3320 prior to trading higher by 0.22% at 1.3290.
The pair was likely to find support at 1.3088, Wednesday’s low and technical resistance exists at 1.3433, the high of December 9.
The single currencies rally was fuelled when Greek officials reached an agreement on austerity measures needed to obtain a EUR130 billion bailout package.
However, Greece, the European Commission, the European Central Bank and the International Monetary Fund are meeting in Brussels today to determine if Greece has met its obligations to qualify for its second bailout package.
The European Central Bank decided to keep interest rates at the record low 1%. President Mario Draghi stated that surveys confirm tentative signs of economic stabilization in the euro zone.
Meanwhile, the Bank of England decided to stimulate the economy with another GBP50 billion to insure the economic recovery continues.
England’s Monetary Policy Committee increased the target for bond purchases to GBP325 billion, over a quarter of current outstanding gilts.
The United States saw a surprising decline in the number of first time unemployment claims last week. This solidifies hopes that the economic recovery is continuing in the world’s largest economy.
Last week, Morgan Stanley slashed its fourth quarter 2012 euro forecast to USD1.15 from an earlier projection of USD1.20. The investment bank expects government budget controls to result in a region wide recession.
The euro was higher against the pound with EUR/GBP climbing 0.12%.
EUR/USD traded at a low of 1.3215 and hit a high of 1.3320 prior to trading higher by 0.22% at 1.3290.
The pair was likely to find support at 1.3088, Wednesday’s low and technical resistance exists at 1.3433, the high of December 9.
The single currencies rally was fuelled when Greek officials reached an agreement on austerity measures needed to obtain a EUR130 billion bailout package.
However, Greece, the European Commission, the European Central Bank and the International Monetary Fund are meeting in Brussels today to determine if Greece has met its obligations to qualify for its second bailout package.
The European Central Bank decided to keep interest rates at the record low 1%. President Mario Draghi stated that surveys confirm tentative signs of economic stabilization in the euro zone.
Meanwhile, the Bank of England decided to stimulate the economy with another GBP50 billion to insure the economic recovery continues.
England’s Monetary Policy Committee increased the target for bond purchases to GBP325 billion, over a quarter of current outstanding gilts.
The United States saw a surprising decline in the number of first time unemployment claims last week. This solidifies hopes that the economic recovery is continuing in the world’s largest economy.
Last week, Morgan Stanley slashed its fourth quarter 2012 euro forecast to USD1.15 from an earlier projection of USD1.20. The investment bank expects government budget controls to result in a region wide recession.
The euro was higher against the pound with EUR/GBP climbing 0.12%.