Forexpros – The euro advanced against the U.S. dollar for a second day on Thursday, climbing to a four-day high after ratings agency Moody’s warned that the U.S. may lose its top-notch credit rating. EUR/USD hit 1.4281 during late Asian trade, the pair’s highest since July 8; the pair subsequently consolidated at 1.4210, rising 0.33%. The pair was likely to find support at 1.3950, Wednesday’s low and resistance at 1.4368, the high of July 8. Late Wednesday, Moody’s Investors Service said that it placed the U.S. government’s Aaa bond rating on review for possible downgrade, citing “a small but rising risk” of a short-lived default, amid a standoff in the U.S. Congress over raising the country's debt ceiling. The greenback was also pressured after Federal Reserve Chairman Ben Bernanke said that the central bank was examining several untested means to stimulate growth if conditions deteriorate, including another round of asset purchases or quantitative easing. Testifying before lawmakers in Congress, Bernanke said policymakers expect the U.S. economic recovery "will likely remain moderate” with the unemployment rate falling "only gradually." The euro also inched higher against the pound, with EUR/GBP easing up 0.09% to hit 0.8801. Later in the day, the European Central Bank was to publish its monthly bulletin. The euro zone was also to release official data on consumer price inflation. Meanwhile, the U.S. was to release a string of economic data, beginning with a report on retail sales, producer price inflation, as well as weekly government data on initial jobless claims. Also Thursday, Fed Chair Ben Bernanke was to deliver the second part of his testimony on monetary policy in Washington. Forexpros - Forex Pros offers a diverse set of professional tools for Forex, Futures and CFDs. These include real-time data streams, technical and fundamental analysis by in-house experts, and a widely used economic calendar and Forex News.

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