EUR/USD breaks above 1.41 as ECB says rates ‘appropriate’

ForexNewsNow | Published on October 14, 2010 at 6:24 am

EUR USD analysis - ECB chief TrichetNEW YORK (Forex News Now) – The euro surged against the dollar on Thursday, breaking above the 1.41 mark, as the European Central Bank said in its monthly bulletin that euro zone interest rates are “appropriate.”

In early European currency market trading, EUR/USD hit 1.4122, its highest since Jan. 26. The currency pair later pulled back slightly to trade at 1.4068, up 0.76 percent on the day.

In the bulletin, the ECB said its governing council still views “the current key ECB interest rates as appropriate.” The monetary policy stance remains “accommodative,” the central bank added.

According to EUR USD analysis, EUR/USD was likely to touch support around Tuesday’s low, 1.3775, and encounter resistance around the high of Jan. 20, 1.4289.

FX traders, meanwhile, awaited a slew of key economic data from the United States on jobless claims, producer price inflation, and the U.S. trade balance.

Elsewhere, the euro fell slightly versus the yen: EUR/JPY traded at 114.16, down 0.04 percent, according to intraday analysis.



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