Investing.com - The euro was higher against the U.S. dollar on Thursday, as investors were eyeing the European Central Bank's rate decision followed by comments by the bank's president Mario Draghi later in the day, while euro zone debt concerns continued to weigh.
EUR/USD hit 1.2955 during European morning trade, the pair's highest since October 2; the pair subsequently consolidated at 1.2939, rising 0.26%.
The pair was likely to find support at 1.2877, Wednesday's low and resistance at 1.2980, the high of September 24.
Sentiment improved after upbeat U.S. data on Wednesday eased concerns over the strength of the country's economic recovery.
The Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 55.1 in September from a reading of 53.7 in August.
Analysts had expected the index to decline to 53.2 in September.
The report came after payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 162,000 in September, surpassing expectations for an increase of 143,000.
The previous month’s figure was revised down to a gain of 189,000 from a previously reported increase of 201,000.
But the euro remained under pressure amid sustained concerns over the outlook for growth in the euro zone, after revised data on Wednesday showed that the euro zone’s service purchasing managers' index dropped to 46.1 in September, well below the 50 level which separates contraction from expansion.
Uncertainty over whether Spain will soon request a full scale sovereign bailout also remained.
Elsewhere, the euro was fractionally higher against the pound with EUR/GBP inching up 0.08%, to hit 0.8034.
Later in the day, the ECB was to announce its benchmark interest rate, followed by a press conference with bank head Mario Draghi.
The U.S. was to release weekly government data on unemployment claims, as well as official data on factory orders, while the Federal Reserve was to produce the minutes of its September policy meeting.
EUR/USD hit 1.2955 during European morning trade, the pair's highest since October 2; the pair subsequently consolidated at 1.2939, rising 0.26%.
The pair was likely to find support at 1.2877, Wednesday's low and resistance at 1.2980, the high of September 24.
Sentiment improved after upbeat U.S. data on Wednesday eased concerns over the strength of the country's economic recovery.
The Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 55.1 in September from a reading of 53.7 in August.
Analysts had expected the index to decline to 53.2 in September.
The report came after payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 162,000 in September, surpassing expectations for an increase of 143,000.
The previous month’s figure was revised down to a gain of 189,000 from a previously reported increase of 201,000.
But the euro remained under pressure amid sustained concerns over the outlook for growth in the euro zone, after revised data on Wednesday showed that the euro zone’s service purchasing managers' index dropped to 46.1 in September, well below the 50 level which separates contraction from expansion.
Uncertainty over whether Spain will soon request a full scale sovereign bailout also remained.
Elsewhere, the euro was fractionally higher against the pound with EUR/GBP inching up 0.08%, to hit 0.8034.
Later in the day, the ECB was to announce its benchmark interest rate, followed by a press conference with bank head Mario Draghi.
The U.S. was to release weekly government data on unemployment claims, as well as official data on factory orders, while the Federal Reserve was to produce the minutes of its September policy meeting.