Investing.com – The euro trimmed gains against the U.S. dollar on Thursday, after the European Central Bank extended special liquidity measures and after data showed U.S. pending home sales jumped in October.
EUR/USD retreated from 1.3217, the pair’s highest since November 29, to hit 1.3177 during European afternoon trade, gaining 0.30%.
The pair was likely to find support at 1.2970, Wednesday’s low and resistance at 1.3301, Monday’s high.
The ECB was due to phase out extra liquidity measures early next year, so the new decision eased pressure in euro zone debt markets.
ECB President, Jean-Claude Trichet also said that the bank’s bond purchase program "is ongoing." Analysts had expected he would announce a sharp increase in its size.
Mr. Trichet declined to comment on the size of recent or prospective bond purchases but noted that they are all sterilized, meaning the ECB was not creating money to fund them.
Earlier Thursday, the ECB left its benchmark interest rate unchanged at 1%, as expected. Mr. Trichet said that the rate was "appropriate" given "contained" inflationary pressures.
Elsewhere, the U.S. National Association of Realtors said its pending home sales index surged by 10.4% in October. Analysts had expected the pending home sales index to decline by 0.9% in October.
The euro was also up against the pound, with EUR/GBP surging 0.69% to hit 0.8467.
Also Thursday, official data showed that the number of people who filed for unemployment assistance in the U.S. last week rose more-than-expected.
EUR/USD retreated from 1.3217, the pair’s highest since November 29, to hit 1.3177 during European afternoon trade, gaining 0.30%.
The pair was likely to find support at 1.2970, Wednesday’s low and resistance at 1.3301, Monday’s high.
The ECB was due to phase out extra liquidity measures early next year, so the new decision eased pressure in euro zone debt markets.
ECB President, Jean-Claude Trichet also said that the bank’s bond purchase program "is ongoing." Analysts had expected he would announce a sharp increase in its size.
Mr. Trichet declined to comment on the size of recent or prospective bond purchases but noted that they are all sterilized, meaning the ECB was not creating money to fund them.
Earlier Thursday, the ECB left its benchmark interest rate unchanged at 1%, as expected. Mr. Trichet said that the rate was "appropriate" given "contained" inflationary pressures.
Elsewhere, the U.S. National Association of Realtors said its pending home sales index surged by 10.4% in October. Analysts had expected the pending home sales index to decline by 0.9% in October.
The euro was also up against the pound, with EUR/GBP surging 0.69% to hit 0.8467.
Also Thursday, official data showed that the number of people who filed for unemployment assistance in the U.S. last week rose more-than-expected.