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Forex - EUR/USD surges to 4-day high, breaking above 1.40

Published 10/21/2010, 07:16 AM
EUR/USD
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EUR/GBP
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Investing.com – The euro extended earlier gains against the U.S. dollar on Thursday, surging to a 4-day high, amid increased volatility ahead of the Group of 20 finance ministers' meeting this weekend.

EUR/USD hit 1.4049 during European early afternoon trade, the pair’s highest since October 15; the pair subsequently consolidated at 1.4025, gaining 0.44%.

The pair was likely to find support at 1.3636, the low of October 5 and resistance at 1.4155, last Friday’s high and a 10-month high.

Earlier in the day the dollar had risen against the euro after U.S. Treasury Secretary Timothy Geithner said he believed major currencies were "roughly in alignment now".

He also called on G20 finance leaders to agree to "norms" on exchange rate policy ahead of the weekend G20 meetings and said he would seek out targets for "sustainable" trade surpluses and deficits as a way to help rebalance the global economy.

The euro was also up against the pound, with EUR/GBP soaring 0.93% to hit 0.8996.

Earlier in the day, preliminary data showed that the euro zone’s manufacturing PMI rose unexpectedly in October.

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