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Forex - EUR/USD steady, close to 4-month high

Published 09/17/2012, 02:39 AM
Updated 09/17/2012, 02:40 AM
EUR/USD
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EUR/GBP
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Investing.com - The euro was steady against the U.S. dollar on Monday, hovering close to a four-month high as risk appetite remained supported after the Federal Reserve announced a fresh round of monetary easing last week to boost U.S. growth.

EUR/USD hit 1.3140 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3123, easing 0.05%.

The pair was likely to find support at 1.2985, the low of September 14 and resistance at 1.3241, the high of May 2.

The Fed announced on Thursday that it would buy USD40 billion of mortgage-backed securities every month and would keep buying them until the job market improves.

"We want to see lower unemployment. We want to see a stronger economy that can cause the improvement to be sustained," Fed Chairman Ben Bernanke said following the central bank's two-day policy meeting.

The bank also said it expects to keep short-term interest rates at record low levels through at least mid-2015, six months longer than previously anticipated.

Meanwhile, the euro also remained supported after the European Central Bank unveiled its own bond purchasing program, dubbed Outright Monetary Transactions, and as Germany’s Constitutional Court allowed the euro zone’s permanent rescue fund to move forward.

The euro was also steady against the greenback with EUR/GBP dipping 0.03%, to hit 0.8093.

Later in the day, the euro zone was to produce official data on the current account, while the U.S. was to publish an index of manufacturing activity in the New York area.


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