Forex - EUR/USD hits 4-day high on ECB rate hike remarks

Published 03/31/2011, 03:36 AM
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Investing.com – The euro rose against the U.S. dollar on Thursday, climbing to a four-day high after a European Central Bank executive board member indicated that the bank was looking at a different rate hike strategy than previously thought.

EUR/USD hit 1.1484 during late Asian trade, the pair’s highest since last Friday; the pair subsequently consolidated at 1.4182, gaining 0.39%.

The pair was likely to find support at 1.4051, Wednesday’s low and resistance at 1.4247, the high of March 22 and a four-month high.

On Wednesday, EBC executive board member Lorenzo Bini Smagh indicated that the bank was looking a series of rate hikes, saying, “We are raising interest rates in a gradual way, first”.

 “Maintaining interest rates where they are now would mean basically becoming more and more expansionary, which is not appropriate,” he added.

Meanwhile, the euro was lower against the pound, with EUR/GBP slipping 0.06% to hit 0.8783.

Later in the day, the euro zone was to publish preliminary data on consumer price inflation, while the U.S. was to publish a government report on initial jobless claims.

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