Investing.com – The euro surged to a 10-month high against the U.S. dollar on Thursday, after a surprise decision by the Monetary Authority of Singapore to tighten monetary policy intensified selling pressure on the U.S. dollar.
EUR/USD hit 1.4101 during late Asian trade, the pair’s highest since January 26; the pair subsequently consolidated at 1.4094, soaring 0.93%.
The pair was likely to find support at 1.3911, Wednesday’s low and resistance at 1.4294, the high of January 20.
Earlier in the day, Singapore’s central bank tightened policy, broadening the range of the Singapore dollar's trading band. At the same time, the authorities said they were maintaining a policy of "modest and gradual appreciation" of the local dollar.
MAS sets policy by managing the Singapore dollar in a secret trade-weighted band against a basket of currencies, instead of setting interest rates.
The move increased pressure on the greenback which has already weakened broadly amid expectations that the Federal Reserve will begin to implement further monetary easing in an effort to stimulate growth.
The euro was also up against the pound, with EUR/GBP gaining 0.08% to hit 0.8789.
Later in the day, the U.S. was to publish official data on initial jobless claims, as well as data on inflation and the country's trade balance.
EUR/USD hit 1.4101 during late Asian trade, the pair’s highest since January 26; the pair subsequently consolidated at 1.4094, soaring 0.93%.
The pair was likely to find support at 1.3911, Wednesday’s low and resistance at 1.4294, the high of January 20.
Earlier in the day, Singapore’s central bank tightened policy, broadening the range of the Singapore dollar's trading band. At the same time, the authorities said they were maintaining a policy of "modest and gradual appreciation" of the local dollar.
MAS sets policy by managing the Singapore dollar in a secret trade-weighted band against a basket of currencies, instead of setting interest rates.
The move increased pressure on the greenback which has already weakened broadly amid expectations that the Federal Reserve will begin to implement further monetary easing in an effort to stimulate growth.
The euro was also up against the pound, with EUR/GBP gaining 0.08% to hit 0.8789.
Later in the day, the U.S. was to publish official data on initial jobless claims, as well as data on inflation and the country's trade balance.