Investing.com - The euro extended gains against the U.S. dollar on Thursday, rallying to a one-week high as comments by European Central Bank President Mario Draghi eased concerns over the sovereign debt crisis in the euro zone.
EUR/USD hit 1.2838 during U.S. morning trade, the pair’s highest since January 5; the pair subsequently consolidated at 1.2814, gaining 0.84%.
The pair was likely to find support at 1.2700, the session low and an almost 16-month low and resistance at 1.2946, the high of January 5.
Speaking at the central bank’s post policy meeting press conference, Draghi said the ECB saw "tentative signs of stabilization of activity at low levels" although the economy still faced "substantial downside risks."
The comments came after the ECB left the benchmark interest rate unchanged at 1.0%.
Draghi also said the central bank’s recent refinancing operation has made a substantial contribution to improving the funding situation for banks in the euro zone and averting a liquidity crunch.
Sentiment on the single currency was boosted earlier after Spain sold twice the maximum targeted amount of EUR5 billion at auction, selling EUR9.98 billion in bonds maturing in 2015 and 2016, including a new benchmark bond at lower yields than in similar offerings in December.
An auction of Italian short-term government debt also met with solid investor demand at sharply lower yields.
In the U.S., official data showed that the number of people who filed for unemployment assistance in the U.S. last week unexpectedly rose to 399,000 from 375,000 the previous week.
A separate report showed that U.S. retail sales rose less-than-expected in December, while core retail sales declined unexpectedly.
The euro was also sharply higher against the pound, with EUR/GBP surging 0.84% to hit 0.8358.
Earlier Thursday, official data showed that industrial production in the euro zone fell by a seasonally adjusted 0.1% in November, compared to expectations for a 0.2% drop, bringing the annualized rate of decline to 0.3%.
EUR/USD hit 1.2838 during U.S. morning trade, the pair’s highest since January 5; the pair subsequently consolidated at 1.2814, gaining 0.84%.
The pair was likely to find support at 1.2700, the session low and an almost 16-month low and resistance at 1.2946, the high of January 5.
Speaking at the central bank’s post policy meeting press conference, Draghi said the ECB saw "tentative signs of stabilization of activity at low levels" although the economy still faced "substantial downside risks."
The comments came after the ECB left the benchmark interest rate unchanged at 1.0%.
Draghi also said the central bank’s recent refinancing operation has made a substantial contribution to improving the funding situation for banks in the euro zone and averting a liquidity crunch.
Sentiment on the single currency was boosted earlier after Spain sold twice the maximum targeted amount of EUR5 billion at auction, selling EUR9.98 billion in bonds maturing in 2015 and 2016, including a new benchmark bond at lower yields than in similar offerings in December.
An auction of Italian short-term government debt also met with solid investor demand at sharply lower yields.
In the U.S., official data showed that the number of people who filed for unemployment assistance in the U.S. last week unexpectedly rose to 399,000 from 375,000 the previous week.
A separate report showed that U.S. retail sales rose less-than-expected in December, while core retail sales declined unexpectedly.
The euro was also sharply higher against the pound, with EUR/GBP surging 0.84% to hit 0.8358.
Earlier Thursday, official data showed that industrial production in the euro zone fell by a seasonally adjusted 0.1% in November, compared to expectations for a 0.2% drop, bringing the annualized rate of decline to 0.3%.