Investing.com – The euro rallied against the U.S. dollar on Thursday, surging to a four-day high after the European Central Bank announced that it would provide additional dollar liquidity to European lenders in a move coordinated with other central banks.
EUR/USD hit 1.3937 during early U.S. trade, the pair’s highest since last Friday; the pair subsequently consolidated at 1.3868, jumping 0.81%.
The pair was likely to find support at 1.3702, the days low and resistance at 1.4098, last Thursday’s high.
The ECB announced that it "has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three U.S. dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year."
European banks have been finding it difficult to borrow dollars as a result of the region's debt crisis and as a result have had to depend more heavily on the ECB for loans.
The single currecy found support earlier after European Union economic and monetary affairs commissioner Olli Rehn said Greece looks likely to receive approval for the disbursement of its next tranche of aid at the end of the month.
The comments came after French and German leaders said Wednesday that they were determined to keep Greece in the euro zone.
Meanwhile, in the U.S., the Labor Department said number of people who filed for unemployment assistance last week rose unexpectedly, increasing by 11,000 to 428,000, confounding expectations for a decline to 410,000.
In a separate report, the Federal Reserve Bank of New York said that its general business conditions index fell by 1.1 points to minus 8.8 in September, worse than expectations for a reading of minus 4.0.
Also Thursday, official data showed that the U.S. core consumer price inflation rose 0.2% in August, in line with market expectations, while consumer prices including food and energy costs rose 0.4% last month, above expectations for a 0.2% gain.
The euro was also higher against the pound and the yen, with EUR/GBP rising 0.47% to hit 0.8762 and EUR/JPY jumping 1.01% to hit 106.46.
Later in the day, ECB President Jean-Claude Trichet was to speak at the Eurofi Financial Forum in Poland. Elsewhere, the U.S. was to publish official data on manufacturing activity in Philadelphia.
EUR/USD hit 1.3937 during early U.S. trade, the pair’s highest since last Friday; the pair subsequently consolidated at 1.3868, jumping 0.81%.
The pair was likely to find support at 1.3702, the days low and resistance at 1.4098, last Thursday’s high.
The ECB announced that it "has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three U.S. dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year."
European banks have been finding it difficult to borrow dollars as a result of the region's debt crisis and as a result have had to depend more heavily on the ECB for loans.
The single currecy found support earlier after European Union economic and monetary affairs commissioner Olli Rehn said Greece looks likely to receive approval for the disbursement of its next tranche of aid at the end of the month.
The comments came after French and German leaders said Wednesday that they were determined to keep Greece in the euro zone.
Meanwhile, in the U.S., the Labor Department said number of people who filed for unemployment assistance last week rose unexpectedly, increasing by 11,000 to 428,000, confounding expectations for a decline to 410,000.
In a separate report, the Federal Reserve Bank of New York said that its general business conditions index fell by 1.1 points to minus 8.8 in September, worse than expectations for a reading of minus 4.0.
Also Thursday, official data showed that the U.S. core consumer price inflation rose 0.2% in August, in line with market expectations, while consumer prices including food and energy costs rose 0.4% last month, above expectations for a 0.2% gain.
The euro was also higher against the pound and the yen, with EUR/GBP rising 0.47% to hit 0.8762 and EUR/JPY jumping 1.01% to hit 106.46.
Later in the day, ECB President Jean-Claude Trichet was to speak at the Eurofi Financial Forum in Poland. Elsewhere, the U.S. was to publish official data on manufacturing activity in Philadelphia.