Investing.com – The euro rallied to a fresh 8-month high against the U.S. dollar on Wednesday, on the widely held view that the Federal Reserve looks increasingly likely to engage in another round of economy-stimulating asset purchases.
EUR/USD hit 1.3871 during early European trade, the pair’s highest since February 4; the pair subsequently consolidated at 1.3869, gaining 0.21%.
The pair was likely to find support at 1.3636, Tuesday’s low and short-term resistance at 1.4025, the high of February 3.
New York Fed President William Dudley said last week that the central bank has the “tools that can provide additional stimulus at costs that do not appear to be prohibitive.”
Meanwhile, Monday Fed Chairman Ben Bernanke said that the central bank aided the U.S. economy through its USD 1.75 trillion purchases of mortgage debt and Treasuries that ended in March 2010 and that more buying would help further.
The euro was also up against the pound with EUR/GBP gaining 0.06% to hit 0.8714.
Later in the day, the U.S. was to release ADP non-farm payrolls data.
EUR/USD hit 1.3871 during early European trade, the pair’s highest since February 4; the pair subsequently consolidated at 1.3869, gaining 0.21%.
The pair was likely to find support at 1.3636, Tuesday’s low and short-term resistance at 1.4025, the high of February 3.
New York Fed President William Dudley said last week that the central bank has the “tools that can provide additional stimulus at costs that do not appear to be prohibitive.”
Meanwhile, Monday Fed Chairman Ben Bernanke said that the central bank aided the U.S. economy through its USD 1.75 trillion purchases of mortgage debt and Treasuries that ended in March 2010 and that more buying would help further.
The euro was also up against the pound with EUR/GBP gaining 0.06% to hit 0.8714.
Later in the day, the U.S. was to release ADP non-farm payrolls data.