Forex - EUR/USD edges higher after Geithner remarks

Forex Pros – The euro edged higher against the U.S. dollar on Thursday, erasing early losses, following remarks by U.S. Treasury Secretary Timothy Geithner.

EUR/USD hit 1.3975 during late Asian trade, a daily high, the pair subsequently consolidated at 1.3973, gaining 0.07%.

The pair was likely to find support at 1.3636, the low of October 5 and resistance at 1.4155, last Friday’s high and a 10-month high.

In an interview with the Wall Street Journal Geithner said he believes major currencies are "roughly in alignment now," suggesting he sees no need for further dollar falls against the euro and yen.

He also called on G20 finance leaders to agree to "norms" on exchange rate policy ahead of the weekend G20 meetings and said he would seek out targets for "sustainable" trade surpluses and deficits as a way to help rebalance the global economy.

The euro was also up against the pound, with EUR/GBP gaining 0.50% to hit 0.8856.

On Tuesday, the Federal Reserve’s Beige Book reported that "national economic activity continued to rise, albeit at a modest pace" from September through early October.

This was in contrast with the previous beige book, released in early September, which reported "widespread signs of deceleration compared with previous periods."