Investing.com – The euro rebounded from a four-day low against the U.S. dollar on Thursday, as concerns over the regions sovereign debt crisis appeared to be increasingly priced in to the currency.
EUR/USD clawed back up from 1.4054, the pair’s lowest since last Friday, to hit 1.4140 during European late morning trade, gaining 0.39%.
The pair was likely to find support at 1.3979, the low of March 18 and resistance at 1.4214, Wednesday’s high.
Earlier in the day, Moody's downgraded the credit rating of 30 Spanish banks by one or more notches, though the rating of the nation’s largest banks remained untouched.
Meanwhile, Portugal's prime minister resigned on Wednesday after parliament rejected his government's latest austerity measures, increasing the likelihood that the country will need a bailout.
The single currency was supported by the view that the European Central Bank is likely to raise interest rates next month.
The euro was also higher against the pound, with EUR/GBP surging 0.70% to hit 0.8738.
Also Thursday, European Union leaders were to begin a two-day summit meeting to discuss ways to enlarge the effective lending capacity of the regions bailout fund, however, a final decision was unlikely to be reached before June.
EUR/USD clawed back up from 1.4054, the pair’s lowest since last Friday, to hit 1.4140 during European late morning trade, gaining 0.39%.
The pair was likely to find support at 1.3979, the low of March 18 and resistance at 1.4214, Wednesday’s high.
Earlier in the day, Moody's downgraded the credit rating of 30 Spanish banks by one or more notches, though the rating of the nation’s largest banks remained untouched.
Meanwhile, Portugal's prime minister resigned on Wednesday after parliament rejected his government's latest austerity measures, increasing the likelihood that the country will need a bailout.
The single currency was supported by the view that the European Central Bank is likely to raise interest rates next month.
The euro was also higher against the pound, with EUR/GBP surging 0.70% to hit 0.8738.
Also Thursday, European Union leaders were to begin a two-day summit meeting to discuss ways to enlarge the effective lending capacity of the regions bailout fund, however, a final decision was unlikely to be reached before June.