Investing.com – The euro rallied against the U.S. dollar on Thursday, advancing to a fresh seven-week high as risk appetite sharpened after better-than-expected U.S. GDP data and after European leaders agreed a plan to counter the debt crisis in the euro zone.
EUR/USD hit 1.4149 during U.S. morning trade, the pair’s highest since September 6; the pair subsequently consolidated at 1.4137, jumping 1.66%.
The pair was likely to find support at 1.3975, Wednesday’s high and resistance at 1.4245, the high of September 6.
Risk appetite sharpened after the U.S. Bureau of Economic Analysis said in a report earlier that gross domestic product rose by 2.5% in the third quarter, the fastest rate of increase since the third quarter of 2010.
The reading nearly doubled growth of 1.3% recorded in the preceding quarter. Analysts had expected U.S. gross domestic product to rise 2.4% in the third quarter.
The euro had risen broadly after European leaders announced that they reached an agreement with banks to take a 50% writedown on the face value of their Greek debt holdings, easing pressure on the debt-laden country.
Additionally, leaders agreed to enhance the size of the European Financial Stability Facility, the region’s bailout fund to EUR1 trillion, while a plan to recapitalize the region’s banks was also agreed upon.
The single currency was also sharply higher against the pound, with EUR/GBP soaring 1.27% to hit 0.8814.
Also Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 2,000 to 402,000, short of expectations for a decline to 400,000.
A separate report showed that U.S. pending home sales fell for the third consecutive month in September, declining by 4.6%. Analysts had expected pending home sales to rise by 0.2%.
EUR/USD hit 1.4149 during U.S. morning trade, the pair’s highest since September 6; the pair subsequently consolidated at 1.4137, jumping 1.66%.
The pair was likely to find support at 1.3975, Wednesday’s high and resistance at 1.4245, the high of September 6.
Risk appetite sharpened after the U.S. Bureau of Economic Analysis said in a report earlier that gross domestic product rose by 2.5% in the third quarter, the fastest rate of increase since the third quarter of 2010.
The reading nearly doubled growth of 1.3% recorded in the preceding quarter. Analysts had expected U.S. gross domestic product to rise 2.4% in the third quarter.
The euro had risen broadly after European leaders announced that they reached an agreement with banks to take a 50% writedown on the face value of their Greek debt holdings, easing pressure on the debt-laden country.
Additionally, leaders agreed to enhance the size of the European Financial Stability Facility, the region’s bailout fund to EUR1 trillion, while a plan to recapitalize the region’s banks was also agreed upon.
The single currency was also sharply higher against the pound, with EUR/GBP soaring 1.27% to hit 0.8814.
Also Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 2,000 to 402,000, short of expectations for a decline to 400,000.
A separate report showed that U.S. pending home sales fell for the third consecutive month in September, declining by 4.6%. Analysts had expected pending home sales to rise by 0.2%.