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Forex - Euro rises to fresh 3-week highs against weaker dollar

Published 10/09/2015, 09:58 AM
© Reuters.  Euro gains ground vs. dollar amid U.S. rate hike uncertainty
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Investing.com - The euro rose to fresh three-week highs against the U.S. dollar on Friday, as the dovish tone of the minutes of the Federal Reserve's latest policy meeting weighed heavily on the greenback.

EUR/USD hit 1.1379 during U.S. morning trade, the pair's highest since September 18; the pair subsequently consolidated at 1.1345, advancing 0.61%.

The pair was likely to find support at 1.1231, Thursday's low and resistance at 1.1441, the high of September 17.

The Fed's September meeting minutes released on Thursday indicated that policymakers were still watching domestic inflation and the impact of slower global growth when considering when to raise interest rates.

The dollar found mild support however after Federal Reserve Bank of Atlanta President Dennis Lockhart said the Fed is still to likely raise interest rates later this month or in December.

Elsewhere, in the minutes of the European Central Bank's September policy meeting released on Thursday, officials said that downside risks to inflation intensified over the summer, but that they need more time to gauge the impact of market volatility and slower growth in China.

ECB officials also reiterated the central bank's willingness to increase its stimulus programs to address the risks of low inflation.

The euro was also higher against the pound, with EUR/GBP climbing 0.81% to 0.7406.

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