Forex - EUR/USD near 2-month high on ECB hopes

Published 09/04/2012, 02:24 AM
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Investing.com - The euro was slightly higher against the U.S. dollar on Tuesday, as demand for the single currency was supported by expectations that the European Central Bank will soon announce measures to tackle the euro zone’s debt crisis.

EUR/USD hit 1.2628 during late Asian trade, the pair’s highest since Friday; the pair subsequently consolidated at 1.2607, gaining 0.13%.

The pair was likely to find support at 1.2492, Friday’s low and near-term resistance at 1.2636, Friday’s high and a two-month high.

The euro was buoyed by expectations that the ECB will announce details of measures to help stabilize the region’s sovereign debt markets after its upcoming policy setting meeting on Thursday.

The dollar remained under pressure amid speculation over how close the Federal Reserve is to implementing another round of monetary easing, after Fed Chairman Ben Bernanke said last week that the bank would act as needed to strengthen the U.S. economic recovery.

Investors were looking ahead to U.S. government data on non-farm payrolls on Friday, to see if the labor market has improved.

The euro pushed higher against the pound and the yen, with EUR/GBP up 0.13% to 0.7936 and EUR/JPY climbing 0.28% to 98.82.

Later Tuesday, the Institute for Supply Management was to release a closely watched report on U.S. manufacturing activity.



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