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Forex - Euro soars against dollar in wake of ZEW data

Published 03/16/2010, 07:50 AM
EUR/USD
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EUR/JPY
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Investing.com – The euro soared against the U.S. dollar on Tuesday in the wake of better-than-expected data on German economic sentiment, and ahead of a key decision by the U.S. Federal Reserve on interest rates.

During European midday trade, EUR/USD surged to 1.3725, gaining 0.35%.

The pair was likely to find resistance at 1.4026, the high of Feb. 3, and support at 1.3434, the low of March 2 and a 9-month low.

Earlier Tuesday, the ZEW research institute showed in a report that German economic sentiment decreased by less than forecast in March.

The institute said its Indicator of Economic Sentiment slid to 44.5 during the month, from 45.1 in February. Economists had expected the index to drop to 43.5.

Meanwhile, the single European currency also jumped against the yen, with EUR/JPY climbing 0.53% to hit 124.47.

Later in the day, the U.S. Federal Reserve's Federal Open Market Committee was due to hold a policy-setting meeting, at which it was expected to reiterate its vow to keep interest rates very low for an "extended period."

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