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Forex - Euro close to 15-month peak vs. dollar on rate outlook

Published 04/14/2011, 02:37 AM
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Investing.com – The euro was close to a 15-month high against the U.S. dollar on Thursday, after Wednesday's U.S. retail sales data and the Federal Reserve’s Beige Book report reiterated the view that the Fed will lag the European Central Bank in tightening policy.

EUR/USD hit 1.4514 during late Asian trade, the daily high; the pair subsequently consolidated at 1.4513, gaining 0.49%.

The pair was likely to find support at 1.4376, Tuesday’s low and short-term resistance at 1.4577, the high of January 13, 2010.

On Wednesday, the Commerce Department said that total retail sales increased 0.4% in March, compared with a 1.1% gain in the prior month, as rising gasoline and home-furnishings revenue offset declining sales of cars.

Also Wednesday, the Beige Book said that economic activity in the U.S. continued to improve over the last month, helped by the manufacturing and retail sectors, but the disaster in Japan and higher energy prices created new uncertainty about the outlook.

Meanwhile, the euro was slightly lower against the pound, with EUR/GBP slipping 0.05% to hit 0.8873.

Later in the day, the ECB was to release its monthly bulletin while the U.S. was to publish government data on initial jobless claims and producer price inflation.

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