Investing.com – The euro surged to hit a fresh 4-day high against the U.S. dollar on Monday, after the European Commission raised it forecast of growth for the euro zone for 2010.
EUR/USD hit 1.2845 during European afternoon trade, the pair's highest since September 7; the pair subsequently consolidated at 1.2843, jumping 1.23%.
The pair was likely to find support at 1.2643, last Friday's low and resistance at 1.2917, the high of September 6.
Earlier in the day, the EC said it now expected the euro zone economy to expand by 1.7%, up from a previous estimate of 0.9%, but warned that growth is likely to slow in the second half as the world economy hits a "soft patch".
Commenting on the report, Olli Rehn, the EU's economic and monetary affairs commissioner said "This gives reason for cautious optimism, despite a more uncertain global environment."
The euro was also up against the pound, with EUR/GBP gaining 0.90% to hit 0.8329.
Later in the day, the U.S. was to release official data on its federal budget balance.
EUR/USD hit 1.2845 during European afternoon trade, the pair's highest since September 7; the pair subsequently consolidated at 1.2843, jumping 1.23%.
The pair was likely to find support at 1.2643, last Friday's low and resistance at 1.2917, the high of September 6.
Earlier in the day, the EC said it now expected the euro zone economy to expand by 1.7%, up from a previous estimate of 0.9%, but warned that growth is likely to slow in the second half as the world economy hits a "soft patch".
Commenting on the report, Olli Rehn, the EU's economic and monetary affairs commissioner said "This gives reason for cautious optimism, despite a more uncertain global environment."
The euro was also up against the pound, with EUR/GBP gaining 0.90% to hit 0.8329.
Later in the day, the U.S. was to release official data on its federal budget balance.