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Forexpros – The euro moved lower against the U.S. dollar in Asian trade Thursday, following a German court decision approving the country’s participation in a bailout plan for debt-threatened euro-zone nations.
EUR/USD hit 1.4078 in early Asian trade, the pair’s lowest since Tuesday; the pair subsequently consolidated at 1.4084 falling 0.10%.
The pair was likely to find support at 1.3974, Tuesday’s low, and resistance at 1.4288, last Friday’s high.
Greek and German stock markets surged following a ruling by Germany’s Federal Constitutional Court upholding German participation in last year’s Greek bailout and the formation of the European Financial Stability Facility.
Plaintiffs in the case had sought to block the country’s role in euro-zone bailouts.
The court, however, ruled that future German bailout efforts would require parliamentary approval.
Earlier Wednesday, Italy’s Senate voted to approve a USD76 billion austerity plan to appease demands from the European Central Bank that the country take more aggressive steps to reduce its budget deficit.
European stocks finished Wednesday’s session higher, with France’s CAC 40 rising 3.62% to 3,073.18, Britain’s FTSE 100 climbed 3.14% to 5,318.59, and Germany’s DAX rose sharply by 4.07% to 5,405.53.
The news on Germany and Italy helped ease European debt concerns on Wall Street as U.S. stocks posted their first gain in four days.
The Dow Jones Industrial Average rose 2.47% to 11,414.86, the Nasdaq Composite Index added 3.04% to 2,548.94 and the S&P 500 advanced 2.86% to close the day at 1,198.62.
Meanwhile, the euro was lower against the both British pound and the Japanese yen, with EUR/GBP down by 0.04% to hit 0.8814, and EUR/JPY falling 0.02% to hit 108.86.
U.S. President Barack Obama was scheduled to deliver a speech on jobs to a joint session of Congress later Thursday, where he was expected to propose a nearly USD300 package to boost the country’s employment.
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