Investing.com – The euro extended gains against the U.S. dollar on Tuesday, soaring to a fresh 6-day high, amid uncertainty over the scale and potential impact of fresh monetary easing by the Federal Reserve.
EUR/USD hit 1.4050 during European afternoon trade, the pair’s highest since October 25; the pair subsequently consolidated at 1.4022, leaping 0.93%.
The pair was likely to find support at 1.3806, last Friday’s low and resistance at 1.4155, the high of October 15 and an 8-month high.
Earlier in the day, research group Markit upwardly revised its October euro zone manufacturing purchasing manager’s index to 54.6 from 53.7 in September. It had originally been estimated at 54.1.
Commenting on the data, Chris Williamson Chief Economist at Markit said “An improvement in the PMI for the first time in three months provides much needed reassurance that manufacturing remains an important driver of the euro area recovery.”
The euro was also up against the pound, with EUR/GBP jumping 1.09% to hit 0.8757.
Later in the day, Federal Reserve policy makers were to begin their 2-day November policy meeting, which was widely expected to result in the unveiling of fresh monetary easing. Also Tuesday, U.S. mid-term elections were due to be held.
EUR/USD hit 1.4050 during European afternoon trade, the pair’s highest since October 25; the pair subsequently consolidated at 1.4022, leaping 0.93%.
The pair was likely to find support at 1.3806, last Friday’s low and resistance at 1.4155, the high of October 15 and an 8-month high.
Earlier in the day, research group Markit upwardly revised its October euro zone manufacturing purchasing manager’s index to 54.6 from 53.7 in September. It had originally been estimated at 54.1.
Commenting on the data, Chris Williamson Chief Economist at Markit said “An improvement in the PMI for the first time in three months provides much needed reassurance that manufacturing remains an important driver of the euro area recovery.”
The euro was also up against the pound, with EUR/GBP jumping 1.09% to hit 0.8757.
Later in the day, Federal Reserve policy makers were to begin their 2-day November policy meeting, which was widely expected to result in the unveiling of fresh monetary easing. Also Tuesday, U.S. mid-term elections were due to be held.