🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Forex - Euro close to 4-month high as oil, yields weigh on dollar

Published 03/07/2011, 10:51 AM
EUR/USD
-
EUR/GBP
-
Investing.com – The euro held gains against the U.S. dollar on Monday, trading close to a four-month high as a combination of rising oil prices and the Federal Reserves loose monetary policy weighed on sentiment towards the greenback.

EUR/USD hit 1.4036 during European late afternoon trade, the pair’s highest since November 8; the pair subsequently consolidated at 1.4008, climbing 0.15%.

The pair was likely to find support at 1.3832, Thursday’s low and short-term resistance at 1.4084, the high of November 8.

Earlier in the day, the single currency briefly slipped after ratings agency Moody's downgraded Greece’s sovereign debt to B1 from Ba1, with a negative outlook, saying the likelihood that the country will default has risen since June.

Moody's also said Greece's reforms and consolidation plans were very ambitious and were subject to considerable implementation risks, while the country continues to struggle with revenue collection.

However, the euro found support after European Central Bank President Jean-Claude Trichet said Thursday that interest rates may rise as early as next month.

The euro was also higher against the pound, with EUR/GBP rising 0.39% to hit 0.8631.

Later in the day, the U.S. was to publish official data on consumer credit.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.