Investing.com – The euro extended gains against the U.S. dollar on Wednesday, climbing to a fresh two-day high after Federal Reserve Chairman Ben Bernanke reiterated the central bank's position that the U.S. economy warrants low rates for an “extended period.”
EUR/USD hit 1.4122 during early U.S trade, the pair’s highest since Monday; the pair subsequently consolidated at 1.4108, jumping 0.94%.
The pair was likely to find support at 1.3837, Tuesday’s low and resistance at 1.4227, Monday’s high.
Testifying before lawmakers in Washington, Bernanke said the Fed was examining several untested means to stimulate growth if conditions deteriorate, including another round of asset purchases or quantitative easing.
Bernanke said policymakers expect the U.S. economic recovery "will likely remain moderate” with the unemployment rate falling "only gradually." Inflation is expected to subside in coming months, he said.
Following the remarks the euro added to gains made earlier in the day, after official data showed that Chinese gross domestic product expanded by 9.5% in the second quarter, soothing markets which have been roiled by fears that the euro zone’s debt crisis is deepening.
The euro was also higher against the pound, with EUR/GBP rising 0.52% to hit 0.8828.
Also Wednesday, Irish bond yields surged to euro-lifetime highs, after Ireland became the third euro zone member, after Greece and Portugal, to have its sovereign debt rating slashed to junk status.
EUR/USD hit 1.4122 during early U.S trade, the pair’s highest since Monday; the pair subsequently consolidated at 1.4108, jumping 0.94%.
The pair was likely to find support at 1.3837, Tuesday’s low and resistance at 1.4227, Monday’s high.
Testifying before lawmakers in Washington, Bernanke said the Fed was examining several untested means to stimulate growth if conditions deteriorate, including another round of asset purchases or quantitative easing.
Bernanke said policymakers expect the U.S. economic recovery "will likely remain moderate” with the unemployment rate falling "only gradually." Inflation is expected to subside in coming months, he said.
Following the remarks the euro added to gains made earlier in the day, after official data showed that Chinese gross domestic product expanded by 9.5% in the second quarter, soothing markets which have been roiled by fears that the euro zone’s debt crisis is deepening.
The euro was also higher against the pound, with EUR/GBP rising 0.52% to hit 0.8828.
Also Wednesday, Irish bond yields surged to euro-lifetime highs, after Ireland became the third euro zone member, after Greece and Portugal, to have its sovereign debt rating slashed to junk status.