The euro continued its march back up against the U.S. dollar on today, meeting a one-week high as European Central Bank President Draghi eased concerns over the european debt crisis.
EUR/USD moved up to 1.2838 during early morning trade, the pair’s highest since January 5; the pair subsequently consolidated at 1.2814, gaining 0.84%. This was helped by a negative retail report and a jump in unemployment claims in the US.
The EUR/USD should find support at 1.2700, almost a 16-month low and resistance at 1.2946, the high of January 5, but it is doubtful the EUR will hit the top number.
The ECB left the benchmark interest rate unchanged at 1.0%. Draghi also said the central bank’s recent refinancing operation has made a substantial contribution to improving the funding situation for banks in the euro zone and averting a liquidity crunch.
Spain sold twice the maximum targeted amount of EUR5 billion at auction, selling EUR9.98 billion in bonds maturing in 2015 and 2016, including a new benchmark bond at lower yields than in similar offerings in December helping to push the EUR up. Adding an auction of Italian short-term government debt also met with solid investor demand at sharply lower yields. It was a heyday for the EURO.
U.S., data dissappointed today showing the number of people who filed for unemployment assistance in the last week unexpectedly rose to 399,000 from 375,000 the previous week.
Originally posted here
