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Forex - Euro hits 2-month high against broadly weaker dollar

Published 08/29/2011, 02:24 AM
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Investing.com – The euro climbed to a two-month high against the broadly weaker U.S. dollar on Monday, as risk appetite was boosted after Federal Reserve Chairman Ben Bernanke said Friday that the bank remained ready to stimulate growth.

EUR/USD hit 1.4549 during late Asian trade, the pair’s highest since July 5; the pair subsequently consolidated at 1.4536, gaining 0.26%.

The pair was likely to find support at 1.4330, Friday’s low and resistance at 1.4649, the high of June 8.

Speaking at the central bank’s annual gathering in Jackson Hole, Wyoming on Friday, Bernanke said that the U.S. economy was recovering and the Fed still had a “range of tools” it can use to bolster growth.

Bernanke also said that the Fed’s September policy-setting meeting would be extended to two days from one, in order to “allow a fuller discussion” on the economy.

The euro was also higher against the pound, with EUR/GBP rising 0.16% to hit 0.8873.

Later in the day, European Central Bank President Jean-Claude Trichet was appearing before the European Parliament's Economic Committee in Brussels, to testify on the region’s debt crisis.

Also Monday, Germany was to produce preliminary data on consumer price inflation, while the U.S. was to release industry data on pending home sales.

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