Investing.com – The euro held gains against the U.S. dollar on Tuesday, trading close to a one-month high, ahead of testimony on the U.S. economic outlook by Federal Reserve Chairman Ben Bernanke.
EUR/USD hit 1.3853 during European late morning trade, the daily high; the pair subsequently consolidated at 1.3827, rising 0.15%.
The pair was likely to find support at 1.371, Monday’s low and short-term resistance at 1.3860, the high of February 2 and a three-month high.
Bernanke was expected to maintain a cautious tone on the economy in his testimony before the Senate Banking Committee later in the day.
In contrast, the European Commission said earlier that the euro zone economy was likely to grow faster than previously forecast in 2011.
The EU executive said it now expected the euro zone economy to grow 1.6% in 2011, up from 1.5% rate of growth it forecast in November.
"While exports should continue supporting the recovery, a rebalancing of growth towards domestic demand is expected for 2011, resulting in more sustainable growth," Economic and Monetary Affairs Commissioner Olli Rehn said.
The Commission said also said euro zone inflation, which the European Central Bank wants to keep below its 2% target rate, would be 2.2% this year, up from the 1.8% forecast in November.
Meanwhile, the euro was almost unchanged against the pound, with EUR/GBP dipping 0.01% to hit 0.8490.
Also Tuesday, data showed that the euro zone's manufacturing sector grew at the fastest pace in almost 11 years in February, driven by a record expansion in Germany.
A separate preliminary report showed that consumer price inflation in the euro zone rose 2.4% in February, to hit its highest level since October 2008.
EUR/USD hit 1.3853 during European late morning trade, the daily high; the pair subsequently consolidated at 1.3827, rising 0.15%.
The pair was likely to find support at 1.371, Monday’s low and short-term resistance at 1.3860, the high of February 2 and a three-month high.
Bernanke was expected to maintain a cautious tone on the economy in his testimony before the Senate Banking Committee later in the day.
In contrast, the European Commission said earlier that the euro zone economy was likely to grow faster than previously forecast in 2011.
The EU executive said it now expected the euro zone economy to grow 1.6% in 2011, up from 1.5% rate of growth it forecast in November.
"While exports should continue supporting the recovery, a rebalancing of growth towards domestic demand is expected for 2011, resulting in more sustainable growth," Economic and Monetary Affairs Commissioner Olli Rehn said.
The Commission said also said euro zone inflation, which the European Central Bank wants to keep below its 2% target rate, would be 2.2% this year, up from the 1.8% forecast in November.
Meanwhile, the euro was almost unchanged against the pound, with EUR/GBP dipping 0.01% to hit 0.8490.
Also Tuesday, data showed that the euro zone's manufacturing sector grew at the fastest pace in almost 11 years in February, driven by a record expansion in Germany.
A separate preliminary report showed that consumer price inflation in the euro zone rose 2.4% in February, to hit its highest level since October 2008.