Investing.com - The euro traded sharply higher against the U.S. dollar Thursday, after European Central Bank President Marion Draghi reiterated that the single currency is “irreversible” and said that he remained committed to preserving the "singleness" of monetary policy in the euro zone.
EUR/USD traded at 1.3000 during the U.S afternoon session, surging 0.73%
The pair was likely to find support at 1.2876, Wednesday’s low and resistance at 1.3046, the high of September 21.
Supporting the single curency, Draghi stated the ECB was ready to buy the debt of distressed euro zone states when the prerequisites are in place and reiterated that the central bank was acting strictly within its mandate in undertaking a bond buying program via Outright Monetary Transactions.
Draghi said the announcement of OMT’s had helped alleviate market tensions in recent weeks.
Draghi added that the economic risks in the euro zone remain to the downside and added that economic indicators point to weak growth in the third quarter.
The ECB left rates on hold at a record low 0.75% earlier, in a widely anticipated decision.
Market sentiment has been underpinned by hopes that Spain will soon request a bailout and trigger the ECB’s bond purchasing program, a move which investors hope would ease the debt crisis in the region.
In the U.S., the Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose to 367,000, compared to expectations for an increase to 370,000.
The euro was also trading close to two-week highs against the pound and the yen, with EUR/GBP up 0.21% to 0.8044 and EUR/JPY rising 0.62% to 101.92.
Investors were anticipating the release of the minutes of the Federal Reserve’s most recent policy meeting later in the session.