Investing.com - The euro edged up to a four-month high against the U.S. dollar on Wednesday, as optimism ahead of a German court ruling and speculation that Spain is considering requesting assistance from the European Central Bank’s bond buying program boosted the single currency.
EUR/USD hit 1.2883 during late Asian trade, the pair’s highest since May 14; the pair subsequently consolidated at 1.2869 gaining 0.12%.
The pair was likely to find support at 1.2753, Tuesday’s low and resistance at 1.2956, the high of May 11.
Germany’s constitutional court was expected to approve the country’s participation in the euro zone’s new bailout fund, the European Stability Mechanism, later in the day.
The euro found additional support after Spain’s Prime Minister Mariano Rajoy indicated that the country is considering getting assistance from the ECB’s bond purchasing program, but outruled a full-blown sovereign bailout.
The greenback has come under broad selling pressure in recent days amid speculation that the U.S. Federal Reserve may implement a third round of quantitative easing after its upcoming policy meeting, which concludes on Thursday.
The greenback extended losses after ratings agency Moody’s warned Tuesday that it could downgrade the U.S’s triple-A rating if budget negotiations for 2013 do not result in policy measures which will reduce the country’s debt.
The euro was higher against the pound and the yen, with EUR/GBP inching up 0.11% to 0.8008 and EUR/JPY rising 0.30% to 100.25.
The euro was little changed after revised data showed that German consumer price inflation rose by 0.4% in August, slightly higher than the preliminary estimate of 0.3%, bringing the annualized rate of inflation to 2.1%.
EUR/USD hit 1.2883 during late Asian trade, the pair’s highest since May 14; the pair subsequently consolidated at 1.2869 gaining 0.12%.
The pair was likely to find support at 1.2753, Tuesday’s low and resistance at 1.2956, the high of May 11.
Germany’s constitutional court was expected to approve the country’s participation in the euro zone’s new bailout fund, the European Stability Mechanism, later in the day.
The euro found additional support after Spain’s Prime Minister Mariano Rajoy indicated that the country is considering getting assistance from the ECB’s bond purchasing program, but outruled a full-blown sovereign bailout.
The greenback has come under broad selling pressure in recent days amid speculation that the U.S. Federal Reserve may implement a third round of quantitative easing after its upcoming policy meeting, which concludes on Thursday.
The greenback extended losses after ratings agency Moody’s warned Tuesday that it could downgrade the U.S’s triple-A rating if budget negotiations for 2013 do not result in policy measures which will reduce the country’s debt.
The euro was higher against the pound and the yen, with EUR/GBP inching up 0.11% to 0.8008 and EUR/JPY rising 0.30% to 100.25.
The euro was little changed after revised data showed that German consumer price inflation rose by 0.4% in August, slightly higher than the preliminary estimate of 0.3%, bringing the annualized rate of inflation to 2.1%.