Investing.com – The euro rallied to an almost two-week high against the U.S. dollar on Thursday, amid optimism that euro zone officials were nearing a deal on a second bailout package for Greece.
EUR/USD hit 1.4354 during early U.S. trade, the pair’s highest since July 14; the pair subsequently consolidated at 1.4345, jumping 0.92%.
The pair was likely to find support at 1.4067, Tuesday’s low and resistance at 1.4552, the high of July 5.
According to a draft outline of summit proposals, the euro zone would agree to reduce the interest rate paid by indebted countries on loans from the region’s bailout fund, the European Financial Stability Facility and to extend loan maturities.
The EFSF could also be given authority to lend to governments to recapitalize banks, taking pressure off the European Central Bank.
Earlier in the day, the euro weakened broadly after Eurogroup President Jean-Claude Juncker said a selective default for Greece was possible.
The euro also found support after the U.S. Department of Labor said the number of people who filed for unemployment assistance rose more-than-expected last week. Initial claims for state unemployment benefits increased 10,000 to a seasonally adjusted 418,000, the Labor Department said.
A separate report showed that manufacturing activity in the Philadelphia region rose less-than-expected in July.
The euro was also higher against the pound, with EUR/GBP rising 0.21% to hit 0.8820.
Earlier Thursday, preliminary data showed that German manufacturing output fell to a 21-month low in July, while manufacturing activity in the euro zone slumped to the lowest since August 2009.
EUR/USD hit 1.4354 during early U.S. trade, the pair’s highest since July 14; the pair subsequently consolidated at 1.4345, jumping 0.92%.
The pair was likely to find support at 1.4067, Tuesday’s low and resistance at 1.4552, the high of July 5.
According to a draft outline of summit proposals, the euro zone would agree to reduce the interest rate paid by indebted countries on loans from the region’s bailout fund, the European Financial Stability Facility and to extend loan maturities.
The EFSF could also be given authority to lend to governments to recapitalize banks, taking pressure off the European Central Bank.
Earlier in the day, the euro weakened broadly after Eurogroup President Jean-Claude Juncker said a selective default for Greece was possible.
The euro also found support after the U.S. Department of Labor said the number of people who filed for unemployment assistance rose more-than-expected last week. Initial claims for state unemployment benefits increased 10,000 to a seasonally adjusted 418,000, the Labor Department said.
A separate report showed that manufacturing activity in the Philadelphia region rose less-than-expected in July.
The euro was also higher against the pound, with EUR/GBP rising 0.21% to hit 0.8820.
Earlier Thursday, preliminary data showed that German manufacturing output fell to a 21-month low in July, while manufacturing activity in the euro zone slumped to the lowest since August 2009.