Forex - EUR/USD rally stalls at 1.4265 ahead of Trichet

Published 11/04/2010, 09:25 AM
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Investing.com – The euro’s rally against the broadly weaker U.S. dollar stalled at 1.4265 on Thursday, ahead of the European Central Banks monthly press conference.

EUR/USD hit 1.4265 during European afternoon trade, the pair’s highest since January 20; the pair subsequently consolidated at 1.4242, surging 0.72%.

The pair was likely to find support at 1.3991, Wednesday’s low and resistance at 1.4413, the high of January 19.

Earlier Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits rose last week to a seasonally adjusted 457K, after falling to a revised 437K in the preceding week. Analysts had expected initial jobless claims to remain unchanged last week.

The downbeat data came on the heels of the Federal Reserve announcement late Wednesday that it would buy USD 600 billion of U.S. government bonds over the next eight months in an effort to kick-start a "disappointingly slow" economic recovery.

Meanwhile, the euro was down against the pound, with EUR/GBP shedding 0.31% to hit 0.8764.

Also Thursday, the ECB kept its benchmark interest rate unchanged at 1.00% for the 18th consecutive month in November. ECB president Jean-Claude Trichet was to comment on the decision later in the day.

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