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Forex - EUR/USD pushes higher, upside limited

Published 03/15/2012, 03:42 AM
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Investing.com - The euro pushed higher against the U.S. dollar on Thursday, pulling away from a one-month high, but gains looked likely to remain limited as diminished expectations for fresh easing from the Federal Reserve continued to support the greenback.

EUR/USD hit 1.3067 during late Asian trade, the session high; the pair subsequently consolidated at 1.3054, gaining 0.18%.

The pair was likely to find support at 1.3003, the session low and the pair’s lowest since February 16 and resistance at 1.3158, the high of March 12.

The dollar has strengthened since the Fed upgraded its outlook on the U.S. economy on Tuesday, causing investors to trims back expectations for a third round of quantitative easing by the central bank.

However, expectations that the Fed will hold interest rates steady at record low levels through late 2014 looked likely to limit the dollar’s longer term gains.

In the euro zone, Greek Finance Minister Evangelos Venizelos announced his intention to resign, once he is formally elected leader of his socialist PASOK party. Venizelos said with Greece’s second aid package secured his job was completed.

The euro was also higher against the pound and the yen, with EUR/GBP up 0.25% to hit 0.8334 and EUR/JPY rising 0.22% to hit 109.35.

Later in the day, the U.S. was to release government data on producer price inflation, as well as official data on unemployment claims. The country was also to produce reports on manufacturing activity in New York and Philadelphia.

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