Investing.com – The euro held gains against the U.S. dollar on Tuesday, trading close to a 16-month high ahead of an key interest rate decision by the U.S. Federal Reserve on Wednesday.
EUR/USD hit 1.4652 during early U.S. trade, the pair’s highest since December 15 2009; the pair subsequently consolidated at 1.4634, gaining 0.36%.
The pair was likely to find support at 1.4327, the low of April 20 and resistance at 1.4775, the high of December 12, 2009.
The Fed was expected to stick to its plan to complete its USD600 billion bond-buying program in June, while Fed Chairman Ben Bernanke was not expected to give any indications of an immediate plan to tighten the bank's policy.
Ben Bernanke was to hold the first news conference ever by a Fed chief after the two-day policy meeting ended on Wednesday.
Earlier Tuesday, Spain’s Treasury sold EUR1.97 billion of short-term bills in an auction that met with strong investor demand, but at higher yields than previously.
Speculation that Greece may have to restructure its debt, denied by officials, and talks on the euro zone's third bailout in a year in Portugal have pushed up Spain's refinancing costs and fuelled concerns it may be next.
The euro was also higher against the pound, with EUR/GBP rising 0.54% to hit 0.8888.
Also Tuesday, European Central Bank President Jean-Claude Trichet said he “entirely” shared the U.S.’s view that a strong dollar is in the U.S. interest.
The ECB president said he had “full trust” in the U.S. preserving its creditworthiness. All advanced economies, “without exception,” should be “very keen on the sustainability of their long-term fiscal policies,” he said.
EUR/USD hit 1.4652 during early U.S. trade, the pair’s highest since December 15 2009; the pair subsequently consolidated at 1.4634, gaining 0.36%.
The pair was likely to find support at 1.4327, the low of April 20 and resistance at 1.4775, the high of December 12, 2009.
The Fed was expected to stick to its plan to complete its USD600 billion bond-buying program in June, while Fed Chairman Ben Bernanke was not expected to give any indications of an immediate plan to tighten the bank's policy.
Ben Bernanke was to hold the first news conference ever by a Fed chief after the two-day policy meeting ended on Wednesday.
Earlier Tuesday, Spain’s Treasury sold EUR1.97 billion of short-term bills in an auction that met with strong investor demand, but at higher yields than previously.
Speculation that Greece may have to restructure its debt, denied by officials, and talks on the euro zone's third bailout in a year in Portugal have pushed up Spain's refinancing costs and fuelled concerns it may be next.
The euro was also higher against the pound, with EUR/GBP rising 0.54% to hit 0.8888.
Also Tuesday, European Central Bank President Jean-Claude Trichet said he “entirely” shared the U.S.’s view that a strong dollar is in the U.S. interest.
The ECB president said he had “full trust” in the U.S. preserving its creditworthiness. All advanced economies, “without exception,” should be “very keen on the sustainability of their long-term fiscal policies,” he said.