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Forex – EUR/USD Close To 9-week High As EFSF Bond Sale Eyed
Written by article default Tuesday, 25 January 2011 09:19
The euro was up against the U.S. dollar on Tuesday, trading close to a nine-week high amid growing expectations that the European Central Bank will raise interest rates ahead of the U.S. Federal Reserve.EUR/USD hit 1.3684 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3672, gaining 0.24%.
The pair was likely to find support at 1.3539, Monday’s low and short-term resistance at 1.3685, Monday’s high and a nine-week high.
The euro was boosted after European Central Bank President, Jean-Claude Trichet, said Sunday that central banks needed to stay on guard against inflation and the ECB was ensuring higher energy prices did not seep into other prices.
Later Tuesday, the Luxembourg-based European Financial Stability Facility was to offer as much as EUR 5 billion of five-year notes backed by guarantees from euro members in its first bond sale.