Investing.com – The euro extended gains against the U.S. dollar on Thursday, hitting a daily high after Portugal’s opposition leader assured European Union leaders that he was committed to the country’s budget goals.
EUR/USD hit 1.4212 during early U.S. trade, the daily high; the pair subsequently consolidated at 1.4198, surging 0.79%.
The pair was likely to find support at 1.3979, the low of March 18 and resistance at 1.4247, Tuesday’s high and a four-and-a-half-month high.
The euro’s gains came after Portugal's opposition leader said he was committed to spending cuts and avoiding tax increases.
Portugal's prime minister resigned on Wednesday after parliament rejected his minority government's proposed austerity measures, increasing the likelihood that the country will need a bailout.
The country needs to refinance EUR4.5 billion of sovereign debt in April, which could trigger a request for aid.
The single currency remained well supported by expectations for a near-term interest rate hike by the European Central Bank.
The euro was also higher against the pound, with EUR/GBP jumping 1.04% to hit 0.8767.
European Union leaders were attending the first day of a two-day summit to discuss ways to enlarge the effective lending capacity of the regions bailout fund, but a final decision was not expected to be reached before June.
EUR/USD hit 1.4212 during early U.S. trade, the daily high; the pair subsequently consolidated at 1.4198, surging 0.79%.
The pair was likely to find support at 1.3979, the low of March 18 and resistance at 1.4247, Tuesday’s high and a four-and-a-half-month high.
The euro’s gains came after Portugal's opposition leader said he was committed to spending cuts and avoiding tax increases.
Portugal's prime minister resigned on Wednesday after parliament rejected his minority government's proposed austerity measures, increasing the likelihood that the country will need a bailout.
The country needs to refinance EUR4.5 billion of sovereign debt in April, which could trigger a request for aid.
The single currency remained well supported by expectations for a near-term interest rate hike by the European Central Bank.
The euro was also higher against the pound, with EUR/GBP jumping 1.04% to hit 0.8767.
European Union leaders were attending the first day of a two-day summit to discuss ways to enlarge the effective lending capacity of the regions bailout fund, but a final decision was not expected to be reached before June.