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Forex - EUR/USD near 9-month high as U.S. avoids fiscal cliff

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Investing.com - The euro was trading close to a nine-month high against the U.S. dollar on Wednesday, after U.S. lawmakers reached an agreement to avert the fiscal cliff, bolstering investor demand for higher yielding assets.

EUR/USD hit 1.3299 during late Asian trade, the pair's highest since December 12; the pair subsequently consolidated at 1.3278, gaining 0.64%.

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.

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.

U.S. President Barack Obama hailed the deal as "just one step in the broader effort to strengthen the economy".

The U.S. president was speaking after the House of Representatives passed a Senate-backed bill by 257 votes to 167.

The euro was up against the pound, with EUR/GBP rising 0.20% to 0.8136 and hit a one-and-a-half year high against the broadly weaker yen, with EUR/JPY jumping 1.14% to 115.77.

Later Wednesday the U.K. was to release data on manufacturing activity, while in the U.S. the Institute of Supply Management was to produce a report on 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.


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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