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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