Forex Pros – The euro extended gains against the U.S. dollar on Tuesday, advancing to a fresh one-month high after official data showed that euro zone retail sales jumped in April, in spite of concerns over the regions sovereign debt crisis.
EUR/USD hit 1.4682 during European morning trade, the pair’s highest since May 5; the pair subsequently consolidated at 1.4666, climbing 0.62%.
The pair was likely to find support at 1.4450, last Friday’s low and short-term resistance at 1.4898, the high of May 5.
Earlier in the day, Eurostat said retail sales volumes in the euro zone rose 0.9% in April and were up 1.1% compared to the same month last year. Economists had forecast a 0.3% monthly rise and a flat year-on-year reading.
The single currency also found support after European Central Bank President Jean-Claude Trichet said Monday that he may support encouraging investors to buy new Greek bonds to replace existing bonds as officials seek to stem the nation’s debt crisis.
The euro was also higher against the pound, with EUR/GBP rising 0.16% to hit 0.8926.
Later in the day, Federal Reserve Chairman Ben Bernanke was to speak. His comments would be closely watched for his views on the U.S. economic recovery.
ForexPros.com
