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Forex - EUR/USD hits fresh 4-day high after Trichet remarks

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Forexpros - The euro erased losses against the U.S. dollar on Tuesday, rising to hit a four-day high after European Central Bank President Jean-Claude Trichet said the bank was in "strong vigilance mode," signaling a possible rate hike next week.

EUR/USD clawed back up from 1.4238, the daily low, to hit 1.4368 during early U.S. trade, gaining 0.57%.

The pair was likely to find support at 1.4101, Monday's low and a seven-day low and resistance at 1.4441, the high of June 22.

Speaking in Amsterdam earlier, Trichet said that while ECB policymakers might have "very different challenges to cope with, we are very united on the goal of solidly anchoring inflation expectations."

That is "extremely important for the stability, the confidence, and the prosperity of Europe," he said.

Trichet declined to comment specifically on the Greek debt crisis or a French proposal under which creditors would agree to roll over 70% of their Greek bonds.

Greece's parliament was due to vote on an austerity package on Wednesday. If the package is not approved, the European Union and International Monetary Fund have said they will not disburse the next tranche of Greece's bailout loans.

The euro was also higher against the pound, with EUR/GBP climbing 0.34% to hit 0.8964.

Also Tuesday, a U.S. report showed that the S&P/Case-Shiller house price index fell by 4.0% in April, after dropping 3.8% in March. Analysts expected the HPI to fall by 3.9% in April.

A separate report showed that U.S. consumer confidence slumped to a seven-month low in June, amid concerns over the short-term economic outlook.

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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.

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