Investing.com – The euro surged to a fresh 16-month high against the broadly weaker U.S. dollar on Thursday, after Federal Reserve Chairman Ben Bernanke indicated that the central bank would not be tightening monetary policy for some time.
EUR/USD hit 1.4882 during late Asian trade, the pair’s highest since December 12, 2009; the pair subsequently consolidated at 1.4839, gaining 0.35%.
The pair was likely to find support at 1.4631, Wednesday’s low and resistance at 1.5090, the high of December 4, 2009.
During Wednesday’s press conference, Bernanke said that the labor market was improving, but it still was not in good shape and that the Fed will do what is necessary to ensure low inflation.
The central bank, which left interest rates unchanged, said it "will complete" its USD600 billion bond-buying program by the end of June and hold short-term rates at a record low for an "extended period." Bernanke said there was no timetable for tightening.
Meanwhile, the euro was lower against the pound, with EUR/GBP shedding 0.21% to hit 0.8872.
Later in the day, in the euro zone, Germany was to publish official data on employment change. Also Thursday, the U.S. was to publish advance data on first quarter gross domestic product, as well as official data on initial jobless claims.
EUR/USD hit 1.4882 during late Asian trade, the pair’s highest since December 12, 2009; the pair subsequently consolidated at 1.4839, gaining 0.35%.
The pair was likely to find support at 1.4631, Wednesday’s low and resistance at 1.5090, the high of December 4, 2009.
During Wednesday’s press conference, Bernanke said that the labor market was improving, but it still was not in good shape and that the Fed will do what is necessary to ensure low inflation.
The central bank, which left interest rates unchanged, said it "will complete" its USD600 billion bond-buying program by the end of June and hold short-term rates at a record low for an "extended period." Bernanke said there was no timetable for tightening.
Meanwhile, the euro was lower against the pound, with EUR/GBP shedding 0.21% to hit 0.8872.
Later in the day, in the euro zone, Germany was to publish official data on employment change. Also Thursday, the U.S. was to publish advance data on first quarter gross domestic product, as well as official data on initial jobless claims.