Credit: Investing.com - The euro was trading close to nine-month highs against the U.S. dollar on Wednesday, as a deal to avert the U.S. fiscal cliff spurred investor demand for riskier assets.
EUR/USD hit 1.3299 during European afternoon trade, the pair's highest since December 12; the pair subsequently consolidated at 1.3270, gaining 0.58%.
The pair was likely to find support at 1.3174, the low of December 31 and near-term resistance at 1.3307, the high of December 19 and a nine-month peak.
Market sentiment was bolstered after U.S. lawmakers passed a compromise bill on Tuesday to avoid the fiscal cliff, blocking a series of looming tax increases and spending cuts that could have pushed the U.S. economy back into a recession.
However, investors remained cautious over the longer term outlook, with negotiations on raising the U.S. debt ceiling still to come in February.
The euro was up against the pound, with EUR/GBP rising 0.26% to 0.8141 and was trading close to a one-and-a-half year high against the broadly weaker yen, with EUR/JPY up 0.84% to 115.47.
Later Wednesday the Institute of Supply Management was to produce a report on U.S. manufacturing growth.
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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.
