Investing.com – The euro rallied to a 14-month high against the U.S. dollar on Wednesday, boosted by expectations that the European Central Bank will raise its benchmark interest rate this week despite the debt crisis in the bloc's weaker economies.
EUR/USD hit 1.4317 during European early afternoon trade, the pair’s highest since January 19, 2010; the pair subsequently consolidated at 1.4304, advancing 0.57%.
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.
Earlier in the day, Portugal’s Treasury and Government Debt Agency successfully auctioned EUR1 billion of six- and 12-month treasury bills, but was forced to pay sharply higher yields than at 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.
The euro was also higher against the pound, with EUR/GBP rising 0.53% to hit 0.8774.
Also Wednesday, 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.
EUR/USD hit 1.4317 during European early afternoon trade, the pair’s highest since January 19, 2010; the pair subsequently consolidated at 1.4304, advancing 0.57%.
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.
Earlier in the day, Portugal’s Treasury and Government Debt Agency successfully auctioned EUR1 billion of six- and 12-month treasury bills, but was forced to pay sharply higher yields than at 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.
The euro was also higher against the pound, with EUR/GBP rising 0.53% to hit 0.8774.
Also Wednesday, 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.