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Forex - EUR/USD hits 4-day high on China bond interest

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Forex Pros - The euro was up against the U.S. dollar on Thursday, climbing to a four-day high, supported by the possibility that China will step up European bond purchases but concerns over the Greek debt crisis continued to linger.

EUR/USD hit 1.4190 during late Asian trade, the pair's highest since May 20; the pair subsequently consolidated at 1.4174, gaining 0.61%.

The pair was likely to find support at 1.4001, Tuesday's low and resistance at 1.4345, the high of May 20.

The euro found support after a senior official from the People's Bank of China said Beijing should expand its purchases of euro zone sovereign debt and increase direct investment into Europe.

Meanwhile, hopes for a rate hike by the European Central Bank this year were reignited after Executive Board member Juergen Stark said Wednesday that the goal of preventing a financial meltdown had been achieved and "the time has come to return to normal."

The euro was also higher against the pound, with EUR/GBP rising 0.35% to hit 0.8687.

Later in the day, ECB president Jean-Claude Trichet was to speak, while the U.S. was to publish revised government data on first quarter economic growth as well as a weekly report on initial jobless claims.

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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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