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Forex - EUR/USD gains in early U.S. trade

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EUR/USD hit 1.4329 in early U.S. trade, the pair's lowest since Thursday; the pair subsequently consolidated at 1.4427, gaining 0.33%.

The pair was likely to find support at 1.4328, last Thursday's low, and resistance at 1.4500, Tuesday's high.

Speaking from the annual convention of Federal Reserve officials in Jackson Hole, Wyoming, Chairman Ben Bernanke postponed a decision on monetary policy options until the next Federal Open Market Committee meeting late next month.

"These options were discussed in August and we will continue to consider these and other pertinent issues at our meeting in September," Bernanke said.

Dealers had been looking for signs from the Fed of a possible new round of quantitative easing in light of persistently high unemployment, weak factory orders and the recent downgrade by Standard & Poor's of the U.S. top-notch credit rating.

Earlier in the day, the Bureau of Economic Analysis reported that U.S. gross domestic product rose to a seasonally adjusted rate of 1% in the second quarter. That followed a 1.3% rise the previous three-month period but below market expectations of a 1.1% gain for the April to June quarter.

Wall Street shares dipped on the news before recovering to post modest gains in early U.S. trade.

The Dow Jones Industrial Average advanced 0.77% to 11,232.33, the Nasdaq Composite Index rose 1.61% to 2,458.58, and the S&P 500 added 0.76%. to 1,168.24.

In late European trading, France's CAC was down 0.90% to 3,092, Britain's FTSE 100 fell 0.28% to 5,116.79 and Germany's DAX lost 1.20% to 5,517.21.

Meanwhile, the euro was higher against the British pound but down against the Japanese yen, with EUR/GBP up by 0.26% to hit 0.8856, and EUR/JPY falling 0.83% to hit 111.45.

Bernanke announced that the Federal Reserve Bank would be extending its September meeting to two days, September 20 and 21, in order review easing options.

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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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