Investing.com - The euro hit a one-month high against the U.S. dollar on Wednesday, after ratings agency Moody’s decided not to cut Spain’s credit rating to junk status, boosting risk appetite ahead of Thursday’s European Union summit.
EUR/USD hit 1.3123 during early European trade, the pair’s highest since September 17; the pair subsequently consolidated at 1.3110, gaining 0.43%.
The pair was likely to find support at 1.2942, Tuesday’s low and resistance at 1.3171, the high of September 17.
Moody’s confirmed Spain’s credit rating at Baaa3 with a negative outlook, just one notch above junk status and expressed confidence that reforms enacted by the Spanish government and support from the euro zone would ensure that Madrid had continued access to the credit market.
The yield on Spanish 10-year bonds fell to 5.53% following the announcement, the lowest level since April.
Demand for the single currency has been underpinned in recent weeks amid hopes that Spain will soon request a bailout from its euro zone partners, but uncertainty over the timing of a request and what form a bailout would take has persisted.
The euro was also higher against the pound and the yen, with EUR/GBP up 0.27% to 0.8123 and EUR/JPY rising 0.31% to 103.29.
Later in the day, the U.S. was to publish government data on building permits and housing starts.
EUR/USD hit 1.3123 during early European trade, the pair’s highest since September 17; the pair subsequently consolidated at 1.3110, gaining 0.43%.
The pair was likely to find support at 1.2942, Tuesday’s low and resistance at 1.3171, the high of September 17.
Moody’s confirmed Spain’s credit rating at Baaa3 with a negative outlook, just one notch above junk status and expressed confidence that reforms enacted by the Spanish government and support from the euro zone would ensure that Madrid had continued access to the credit market.
The yield on Spanish 10-year bonds fell to 5.53% following the announcement, the lowest level since April.
Demand for the single currency has been underpinned in recent weeks amid hopes that Spain will soon request a bailout from its euro zone partners, but uncertainty over the timing of a request and what form a bailout would take has persisted.
The euro was also higher against the pound and the yen, with EUR/GBP up 0.27% to 0.8123 and EUR/JPY rising 0.31% to 103.29.
Later in the day, the U.S. was to publish government data on building permits and housing starts.