Investing.com – The euro rose to a fresh session high against the U.S. dollar on Wednesday, as investors awaited the outcome of the Federal Reserve’s policy meeting while events in Greece remained in focus after Tuesday’s surprise call for a bailout referendum.
EUR/USD hit 1.3827 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3813, surging 0.79%.
The pair looked likely to find support at 1.3607, Tuesday’s low and a three-week low and resistance at 1.3870, Tuesday’s high.
The dollar was weighed by speculation that the Fed could revise down its forecasts for economic growth at the end of its two-day policy-setting meeting later Wednesday.
Earlier in the day, a report showed that U.S. private sector employment increased more-than-expected in October, as the service sector expanded.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 110,000 in October, beating expectations for an increase of 100,000.
The previous month’s figure was revised up to a gain of 116,000 from a previously reported increase of 91,000.
In the euro zone, Greek Prime Minister George Papandreou won the backing of his cabinet to hold a referendum on a EUR130 billion bailout package earlier Wednesday and was to meet with French and German leaders to discuss the planned vote later.
If Greece rejects the deal it would put the next tranche of aid to Athens in jeopardy, pushing the country closer to a default and increasing the risk of contagion in global financial markets.
The euro was also higher against the pound, with EUR/GBP rising 0.37% to hit 0.8624.
Also Wednesday, reports showed that manufacturing activity in the euro zone contracted for a third consecutive month in October, while the German unemployment rate ticked up, rising for the first time in two years.
EUR/USD hit 1.3827 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3813, surging 0.79%.
The pair looked likely to find support at 1.3607, Tuesday’s low and a three-week low and resistance at 1.3870, Tuesday’s high.
The dollar was weighed by speculation that the Fed could revise down its forecasts for economic growth at the end of its two-day policy-setting meeting later Wednesday.
Earlier in the day, a report showed that U.S. private sector employment increased more-than-expected in October, as the service sector expanded.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 110,000 in October, beating expectations for an increase of 100,000.
The previous month’s figure was revised up to a gain of 116,000 from a previously reported increase of 91,000.
In the euro zone, Greek Prime Minister George Papandreou won the backing of his cabinet to hold a referendum on a EUR130 billion bailout package earlier Wednesday and was to meet with French and German leaders to discuss the planned vote later.
If Greece rejects the deal it would put the next tranche of aid to Athens in jeopardy, pushing the country closer to a default and increasing the risk of contagion in global financial markets.
The euro was also higher against the pound, with EUR/GBP rising 0.37% to hit 0.8624.
Also Wednesday, reports showed that manufacturing activity in the euro zone contracted for a third consecutive month in October, while the German unemployment rate ticked up, rising for the first time in two years.