The euro gained ground against the US dollar on Friday, because recent testimony by FED Chairman Bernanke weighed on the greenback, while the common currency received support after the German producer prices report.
EUR/USD reached a session high at 1.3149 at 3:00 GMT, the highest point since July 16th, after which consolidation followed at 1.3133. The cross was still up by 0.19% for the day. Support was likely to be received at July 16th low, 1.3052, while resistance was to be met at July 10th high, 1.3206.
On Friday a report said that Producer Price Index (PPI) in Germany rose by 0.6% during June in line with projections on annual basis, accelerating in comparison with May, when it added 0.2%. However, in monthly terms, producer prices remained unchanged in June compared to May, but still above the projected 0.1% dip.
Meanwhile, in his second day of testimony on monetary policy before the Financial Services Committee in US Congress, FED Chairman Ben Bernanke reiterated that monetary policy will remain accommodative in the foreseeable future, even as the central bank begins to scale back its asset purchasing program. FEDs Quantitative Easing could be tapered at a faster pace, slower pace or even temporarily increased, if economic conditions allowed so.
Elsewhere, the euro was higher against the British pound, as EUR/GBP cross rose by 0.13% to 0.8623.
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