Investting.com - The euro rose to five-week highs against the dollar on Thursday after Italy saw borrowing costs fall at an auction of government debt, as stimulus measures by Japan spurred investors to seek higher yielding assets.
EUR/USD hit 1.3125 during European morning trade, the pair’s highest since March 8; the pair subsequently consolidated at 1.3120, rising 0.39%.
The pair was likely to find support at 1.3004, Tuesday’s low and resistance at 1.3121, Wednesday’s high and five-week high.
Italy sold EUR4 billion worth of three-year government bonds at an average yield of 2.29%, down from 2.48% at a similar auction last month.
Rome also sold EUR1.66 billion worth of 15-year debt at an average yield of 4.68% and EUR1.5 billion of four-year bonds at a yield of 2.74%.
Market sentiment was boosted earlier after data showed that China saw a large increase in bank lending in March, adding to signs of an economic recovery, one day after trade data indicated that domestic demand remains strong.
Elsewhere, the euro rose to fresh 39-month highs against the yen, with EUR/JPY up 0.28% to 130.74.
The U.S. was to publish the weekly government report on initial jobless claims and data on import prices later in the day.
EUR/USD hit 1.3125 during European morning trade, the pair’s highest since March 8; the pair subsequently consolidated at 1.3120, rising 0.39%.
The pair was likely to find support at 1.3004, Tuesday’s low and resistance at 1.3121, Wednesday’s high and five-week high.
Italy sold EUR4 billion worth of three-year government bonds at an average yield of 2.29%, down from 2.48% at a similar auction last month.
Rome also sold EUR1.66 billion worth of 15-year debt at an average yield of 4.68% and EUR1.5 billion of four-year bonds at a yield of 2.74%.
Market sentiment was boosted earlier after data showed that China saw a large increase in bank lending in March, adding to signs of an economic recovery, one day after trade data indicated that domestic demand remains strong.
Elsewhere, the euro rose to fresh 39-month highs against the yen, with EUR/JPY up 0.28% to 130.74.
The U.S. was to publish the weekly government report on initial jobless claims and data on import prices later in the day.