Forex Pros – The euro was trading close to a four month high against the U.S. dollar on Thursday, as expectations for a near-term interest rate hike by the European Central Bank supported the single currency ahead of a policy meeting later in the day. EUR/USD hit 1.3876 during late Asian trade, a daily high; the pair subsequently consolidated at 1.3865, easing up 0.02%. The pair was likely to find support at 1.3742, Wednesday's low and resistance at 1.3973, the high of November 9. Analysts expected ECB President Jean-Claude Trichet to maintain his recent hawkish tone on inflation and emphasize the banks readiness to raise interest rates as price pressures increase. Meanwhile, in the U.S., the Federal Reserve's Beige Book suggested economic activity picked up in 2011 while a report by payroll processing firm ADP said U.S. private sector employment rose by 217,000 in February, better than the expected 170,000 gain. The euro was also up against the pound, with EUR/GBP rising 0.12% to hit 0.8502. Later in the day, the ECB was to announce its minimum bid rate while the euro zone was to publish official data on retail sales. Also Thursday, the U.S. is to release data on initial jobless claims, as well as a report on service sector activity, while Fed chair Ben Bernanke was to speak at a public engagement.

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