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Forex - EUR/USD edges higher, eyes on U.S. budget talks

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Investing.com - The euro edged higher against the U.S. dollar on Thursday, as budget negotiations aimed at hammering out a deal to avoid a fiscal crisis in the U.S. were set to resume later in the day.

EUR/USD hit 1.3249 during late Asian trade, the daily high; the pair subsequently consolidated at 1.3249, adding 0.19%.

The pair was likely to find support at 1.3172, Wednesday's low and resistance at 1.3296, the high of December 20.

Market players remained focused on developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.

President Barack Obama was to end his vacation and return to Washington on Thursday in order to take part in talks to avert the crisis ahead of the year-end deadline. Both chambers of Congress are also due to return to work on Thursday.

Without a deal, the U.S. could fall back into recession and drag much of the world down with it.

The euro was also higher against the pound with EUR/GBP edging up 0.16%, to hit 0.8207.

Later in the day, the U.S. was to publish its weekly government report on initial jobless claims, as well as data on new home sales and consumer confidence.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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