Investing.com – The euro rebounded from close to a 3-week low against the U.S. dollar on Thursday in thin trade leading up to the Christmas weekend, after remarks made by European Union Monetary Affairs Commissioner Olli Rehn boosted the single currency.
EUR/USD hit 1.3152 during late Asian trade, a daily high; the pair subsequently consolidated at 1.3145, jumping 0.34%.
The pair was likely to find support at 1.3072, the low of December 21, and resistance at 1.3358, the high of December 17.
Earlier in the day, EU Monetary Affairs Commissioner Olli Rehn said that financial markets were underestimating Portugal’s and Spain’s ability to cope with their sovereign debt and stimulate economic growth.
Mr. Rehn also said that the euro zone had the means to contain the debt crisis from spreading, while adding that, “Speculation on the split of euro has no resonance in practical decision-making and political discussion."
The remarks came after ratings agency Fitch warned on Tuesday that it may cut Greece’s credit ranking to non-investment grade within six weeks, while Moody’s Investor Service said it may downgrade Portugal's A1 rating by one or two notches after a review that will take no more than three months.
Elsewhere, the euro was also up against the pound, with EUR/GBP climbing 0.04% to hit 0.8519.
Later in the day, the U.S. was to release a flurry of data, with an official report on initial jobless claims, as well as data on personal spending, durable goods orders and new home sales.
The country was also to publish revised data on consumer sentiment and inflation expectations as well as a report on natural gas inventories.
EUR/USD hit 1.3152 during late Asian trade, a daily high; the pair subsequently consolidated at 1.3145, jumping 0.34%.
The pair was likely to find support at 1.3072, the low of December 21, and resistance at 1.3358, the high of December 17.
Earlier in the day, EU Monetary Affairs Commissioner Olli Rehn said that financial markets were underestimating Portugal’s and Spain’s ability to cope with their sovereign debt and stimulate economic growth.
Mr. Rehn also said that the euro zone had the means to contain the debt crisis from spreading, while adding that, “Speculation on the split of euro has no resonance in practical decision-making and political discussion."
The remarks came after ratings agency Fitch warned on Tuesday that it may cut Greece’s credit ranking to non-investment grade within six weeks, while Moody’s Investor Service said it may downgrade Portugal's A1 rating by one or two notches after a review that will take no more than three months.
Elsewhere, the euro was also up against the pound, with EUR/GBP climbing 0.04% to hit 0.8519.
Later in the day, the U.S. was to release a flurry of data, with an official report on initial jobless claims, as well as data on personal spending, durable goods orders and new home sales.
The country was also to publish revised data on consumer sentiment and inflation expectations as well as a report on natural gas inventories.