Investing.com – The euro was trading close to a 14-month high against the U.S. dollar on Wednesday, as markets positioned themselves for an expected euro zone interest rate increase later in the week.
EUR/USD hit 1.4317 during U.S. morning trade, the pair’s highest since January 19, 2010; the pair subsequently consolidated at 1.4305, advancing 0.59%.
The pair was likely to find support at 1.4114, last Thursday’s low and short-term resistance at 1.4413, the high of January 9, 2010.
The European Central Bank was widely expected to raise interest rates from a record low of 1.0% to 1.25% on Thursday, tightening policy for the first time since October 2008.
The single currency was also lifted after official data showed that German manufacturing orders rose significantly more-than-expected in February, climbing 2.4%, outstripping expectations for a 0.5% increase, boosted by robust domestic and foreign demand.
The euro was also higher against the pound, with EUR/GBP rising 0.53% to hit 0.8774.
Also Wednesday, Portugal successfully auctioned EUR1 billion of six- and 12-month treasury bills but at sharply higher yields that in earlier auctions.
Portuguese banks have been among the main buyers of government debt in recent months, but they are becoming increasingly unwilling to continue buying the debt as the country's credit rating keeps falling.
EUR/USD hit 1.4317 during U.S. morning trade, the pair’s highest since January 19, 2010; the pair subsequently consolidated at 1.4305, advancing 0.59%.
The pair was likely to find support at 1.4114, last Thursday’s low and short-term resistance at 1.4413, the high of January 9, 2010.
The European Central Bank was widely expected to raise interest rates from a record low of 1.0% to 1.25% on Thursday, tightening policy for the first time since October 2008.
The single currency was also lifted after official data showed that German manufacturing orders rose significantly more-than-expected in February, climbing 2.4%, outstripping expectations for a 0.5% increase, boosted by robust domestic and foreign demand.
The euro was also higher against the pound, with EUR/GBP rising 0.53% to hit 0.8774.
Also Wednesday, Portugal successfully auctioned EUR1 billion of six- and 12-month treasury bills but at sharply higher yields that in earlier auctions.
Portuguese banks have been among the main buyers of government debt in recent months, but they are becoming increasingly unwilling to continue buying the debt as the country's credit rating keeps falling.