Investing.com – The euro erased losses against the U.S. dollar on Thursday, climbing to a fresh 10-week high after French President Nicolas Sarkozy said France and Germany were utterly determined to defend the single currency.
EUR/USD hit 1.3757 during European late morning trade, the pair’s highest since November 22; the pair subsequently consolidated at 1.3733, gaining 0.1%.
The pair was likely to find support at 1.3571, Tuesday’s low and resistance at 1.3785, the high of November 22.
President Sarkozy told the World Economic Forum in Davos that Paris and Berlin would take new steps in European economic integration in the coming weeks.
"To those who would bet against the euro, watch out for your money because we are fully determined to defend the euro," he said.
Earlier in the day, the euro slid against the dollar after Standard & Poor cut Japan’s sovereign credit rating to AA- from AA, citing concerns over the country’s high fiscal deficits.
But sentiment on the dollar remained weaker after the Federal Reserve held interest rates steady at 0.25% on Wednesday and said it would see its USD600 billion bond-purchasing plan through to completion in June.
In its January rate statement the bank said,” Economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions".
The euro was also higher against the pound, with EUR/GBP easing up 0.07% to hit 0.8611.
Later in the day, the U.S. was to publish official data on initial jobless claims, as well as reports on durable goods orders and pending home sales.
EUR/USD hit 1.3757 during European late morning trade, the pair’s highest since November 22; the pair subsequently consolidated at 1.3733, gaining 0.1%.
The pair was likely to find support at 1.3571, Tuesday’s low and resistance at 1.3785, the high of November 22.
President Sarkozy told the World Economic Forum in Davos that Paris and Berlin would take new steps in European economic integration in the coming weeks.
"To those who would bet against the euro, watch out for your money because we are fully determined to defend the euro," he said.
Earlier in the day, the euro slid against the dollar after Standard & Poor cut Japan’s sovereign credit rating to AA- from AA, citing concerns over the country’s high fiscal deficits.
But sentiment on the dollar remained weaker after the Federal Reserve held interest rates steady at 0.25% on Wednesday and said it would see its USD600 billion bond-purchasing plan through to completion in June.
In its January rate statement the bank said,” Economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions".
The euro was also higher against the pound, with EUR/GBP easing up 0.07% to hit 0.8611.
Later in the day, the U.S. was to publish official data on initial jobless claims, as well as reports on durable goods orders and pending home sales.