Forex Pros – The euro erased losses against the U.S. dollar on Thursday, climbing to hit a fresh three-week high as a surge in oil prices and expectations of a near-term interest rate hike by the European Central Bank dented the greenbacks appeal.
EUR/USD clawed up from 1.3705, the daily low, to hit 1.3776 during European morning trade, gaining 0.21%.
The pair was likely to find support at 1.3646, Wednesday’s low and short-term resistance at 1.386, the high of February 2 and a three-month high.
The greenback’s losses came amid concerns that higher oil prices could drag on the U.S. economic recovery.
Earlier in the day, Brent crude oil for April delivery was trading at USD116.51 a barrel, its highest level since August 2008, while the Nymex April contract was trading at USD102 a barrel, the highest since September 2008.
Meanwhile, the single currency remained supported after European Central Bank President Jean-Claude Trichet said Wednesday that the bank would take the decisions necessary to maintain price stability.
The euro was also higher against the pound, with EUR/GBP rising 0.48% to hit 0.8521.
Later Thursday, the U.S. was to publish reports on durable goods orders and initial jobless claims, as well as data on new home sales.
ForexPros.com
