Home » forex » EUR-USD extends rally U.S. dollar on Thursday april 21, 2011

Thursday, April 21, 2011

EUR-USD extends rally U.S. dollar on Thursday april 21, 2011

EUR/USD extends rally U.S. dollar on Thursday april 21, 2011 : The euro extended its rally against the weaker U.S. dollar on Thursday, as speculation that the Federal Reserve will lag other central banks in raising interest rates and stronger risk appetite punished the greenback.

EUR/USD hit 1.4648 during European late morning trade, the pair’s highest since December 15, 2009; the pair subsequently consolidated at 1.4626, surging 0.72%.

The pair was likely to find support at 1.4327, Wednesday’s low and resistance at 1.4775, the high of December 11, 2009.

The dollar came under broad selling pressure as strong corporate earnings reports boosted risk appetite, while trade volumes declined ahead of the Easter weekend, with European markets due to be shut both Friday and Monday.

Also Thursday, a report said that German business confidence fell for a second month in April after oil prices rose to the highest level in two-and-a-half years.

The Ifo Institute said its business climate index for Germany slipped to 110.4 in April from a reading of 111.1 in March. The decline was broadly in line with expectations.

The euro remained well supported by expectations for further interest rate increases by the European Central Bank this year, after the bank raised its benchmark interest rate from a record low of 1% to 1.25% earlier this month.

Meanwhile, the euro was down against the pound, with EUR/GBP sliding 0.20% to hit 0.8831.

Later in the day, the U.S. was to publish official data on initial jobless claims and house prices. Also Thursday, the Federal Reserve Bank of Philadelphia was to publish an index of manufacturing activity. For the latest updates PRESS CTR + D or visit Stock Market news Today

Related Post:

Posted by at
Labels:

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)