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Forex - EUR/USD rises to 7-month highs after Fed statement

Published 09/19/2013, 02:39 AM
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Investing.com - The euro was rose against the U.S. dollar on Thursday, hovering near seven-month highs after Federal Reserve unexpectedly left the bank's stimulus program unchanged.

EUR/USD hit 1.3536 during late Asian trade, the pair's highest since February 7; the pair subsequently consolidated at 1.3536, edging up 0.11%.

The pair was likely to find support at 1.3338, Wednesday's low and resistance at 1.3596, the high of February 6.

The Fed refrained on Wednesday from reducing the USD85 billion pace of its monthly asset purchases and said the central bank must determine its policies based on "what’s needed for the economy," even if it surprises markets.

Speaking after the conclusion of the Fed's two-day policy-setting meeting, Fed Chairman Ben Bernanke Bernanke said he wanted to "wait a bit longer and to try to get confirming evidence" that the economy is showing signs of lasting improvement.

Meanwhile, the euro remained supported after data earlier in the week showed that the closely watched ZEW index of German economic sentiment rose to the highest level since April 2010 in September, on the back of the improved economic outlook for the euro zone.

The euro was also higher against the pound with EUR/GBP rising 0.24%, to hit 0.8396.

Later in the day, the U.S. was to release the weekly report on initial jobless claims, as well as the Philly Fed manufacturing index and data on existing home sales.


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