Investing.com - The euro was trading close to seven-and-a-half month highs against the U.S. dollar on Wednesday, as hopes for a deal to avoid the U.S. fiscal cliff fuelled rallies in equities markets and bolstered demand for riskier assets.
EUR/USD hit 1.3256 during late Asian trade, the pair's highest since May 1; the pair subsequently consolidated at 1.3238, inching up 0.08%.
The pair was likely to find support at 1.3155, Tuesday's low and resistance at 1.3366, the high of April 3.
Market sentiment was boosted by signs of progress in negotiations aimed at avoiding automatic tax hikes and spending cuts due to take effect on January 1, which investors fear could threaten U.S. and global growth.
Elsewhere, the yen remained under pressure, weighed down by expectations for more easing by the Bank of Japan at its upcoming policy setting meeting on Thursday.
The euro was trading close to 16-months highs against the yen, with EUR/JPY up 0.15% to 111.54 and was little changed against the sterling, with EUR/GBP dipping 0.01% to 0.8137.
Later Wednesday, the Ifo Institute was to release a report on German business climate, while the U.S. was to publish government data on building permits, housing starts and crude oil stockpiles.
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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.
