Forexpros – The euro rose to a session high against the U.S. dollar on Thursday, boosted by signs of political progress in Italy and Greece and as Italian borrowing costs eased after surging to near unsustainable levels.
EUR/USD hit 1.3638 during European afternoon trade, the session high; the pair subsequently consolidated at 1.3634, advancing 0.70%.
The pair was likely to find support at 1.3483, the days low and resistance at 1.3858, Wednesday’s high.
Earlier Thursday Italy’s Treasury auctioned EUR5 billion of one-year government bonds at an average yield of 6.08%, the highest since September 1997, but still well below analyst expectations of 7%.
Following the auction, the yield on 10-year Italian bonds fell back below the 7% mark, a level widely considered unsustainable for continued borrowing.
Meanwhile, Italian lawmakers prepared a package of deficit reduction and economic stimulus measures demanded by the European Union, ahead of a vote this weekend.
In Greece, former European Central Bank vice-president Lucas Papademos was named as Greece’s new interim prime minister, following days of talks amid a scramble to avert an imminent Greek default.
The euro was also higher against the pound, with EUR/GBP rising 0.44% to hit 0.8547.
Also Thursday, the Bank of England left interest rates unchanged at a record low of 0.5% and announced no fresh monetary easing measures.
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