Forex Pros – The euro extended gains against the U.S. dollar on Thursday, rising to a one-month high after European Central Bank President Jean-Claude Trichet said Europe should consider strengthening central control of economic policy.
EUR/USD hit 1.4486 during European afternoon trade, the pair’s highest since May 6; the pair subsequently consolidated at 1.4463, jumping 0.93%.
The pair was likely to find support at 1.4256, the low of May 30 and short-term resistance at 1.4587, the high of May 6.
Earlier in the day, Trichet said Europe should consider strengthening central control of economic policy if efforts to deal with its debt crisis do not deliver results.
“As a first stage, it is justified to provide financial assistance in the context of a strong adjustment program,” Trichet said. “But if a country is still not delivering, I think all would agree that the second stage has to be different.
European Union policymakers are hammering out a new aid package for Greece that is expected to include new loans, fresh austerity commitments and a stepped-up privatization program, potentially supervised from outside.
The euro was also higher against the pound, with EUR/GBP surging 0.70% to hit 0.8832.
Later Thursday, the U.S. was to publish its weekly report on initial jobless claims, as well as revised data on non-farm productivity and labor costs. The country was also to publish official data on factory orders.
ForexPros.com
