Friday, 11 January 2013

EUR/USD soars as ECB members unanimously leave rates unchanged

The euro shot up against the dollar on Thursday after the European Central Bank voted unanimously to leave benchmark interest rates unchanged, catching a few investors off guard.

In U.S. trading on Thursday, EUR/USD was trading up 1.48% at 1.3260, up from a session low of 1.3039, and off from a high of 1.3262.

The pair was likely to find support at 1.3037, Wednesday's low, and resistance at 1.3308, the high from Dec. 19.

While many were expecting the ECB to leave rates unchanged, some had not ruled out a rate cut due to slumping economic indicators across the currency zone.

Others expected rates to hold at 0.75% but were expecting language from ECB President Mario Draghi to hint at possible loosening, which gave the pair room to soar after voting members agreed unanimously to leave policy untouched.

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