Forexpros – The euro traded higher against the U.S. dollar Thursday, after data showing that U.S. jobless claims rose unexpectedly last week combined with solid German industrial production figures and increased Greek debt hopes lifted risk appetite.
EUR/USD pulled away from 1.3274, the pair’s highest since March 2, to hit 1.3259 during U.S. afternoon trade, up 0.83% on the day.
The pair was likely to find support at 1.3095, Wednesday’s low and a three-week low and resistance at 1.3331, the high of March 2.
Igniting the euro rally, official data showed that German industrial production rebounded in January after a steep drop the previous month, climbing 1.6% and surpassing expectations for a 1.1% increase
Sentiment on the greenback weakened after the Department of Labor reported that the number of people who filed for unemployment assistance in the U.S. last week climbed by 8,000 to a seasonally adjusted 362,000, surprising analysts who forecasted a decline of 4,000 to 350,000.
The previous week’s figure was revised up to 354,000 from 351,000.
The single currency was supported by hopes that Greece was closer to securing a debt swap deal with its private creditors ahead of the 6am GMT deadline, clearing the way for the country to secure its second bailout to avert a default.
A number of major European financial institutions have signed up to Greece’s bond swap deal, which is aimed at writing down 53.5% of the country’s EUR177 billion debt.
Major Greek banks, along with most pension funds, have also agreed to participate in the bond swap.
Earlier in the day, the European Central Bank left its benchmark interest rate unchanged at 1% for the third consecutive month.
Speaking at the bank’s post policy meeting press conference, ECB President Mario Draghi said that the bank’s recent liquidity boosting operation was an “unquestionable success”.
Draghi also said the bank had revised down the growth estimate for the euro zone to a range of between minus 0.5% and 0.3% in 2012 and warned that the economic outlook was still subject to “downside risks.”
The euro held gains against the pound and the yen, with EUR/GBP up 0.37% to hit 0.8384 and EUR/JPY advancing 1.43% to trade at 108.16.
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