Forexpros - The euro hit fresh six-week high against the U.S. dollar on Wednesday, breaking through the 1.31 level as investor sentiment on the single currency was boosted by signs of progress in dealing with the debt crisis in the euro zone. EUR/USD hit 1.3124 during late Asian trade, the pair’s highest since October 18; the pair subsequently consolidated at 1.3111, gaining 0.14%. The pair was likely to find support at 1.3045, Tuesday’s low and near-term resistance at 1.3138, the high of October 17. Greece launched a scheme to buy back debt from private investors on Monday, as part of an agreement to reduce its debt load and unlock a new bailout package worth EUR44 billion. Meanwhile, Spanish and Italian bond yield turned lower after Spain formally requested aid to recapitalize its banks. The euro also found some support as ongoing uncertainty over negotiations to avoid the U.S. fiscal cliff weighed on demand for the dollar. Investors were looking ahead to the upcoming European Central Bank policy meeting on Thursday, with the bank widely expected to keep rates unchanged. The euro was at a six-week high against the pound, with EUR/GBP inching up 0.06% to 0.8136 and hit an eight month high against the yen, with EUR/JPY advancing 0.60% to 107.88. Later in the day, the euro zone was to release official data on retail sales, while Spain was to hold an auction of 10-year government bonds. The U.S. was to release a report on ADP nonfarm payrolls, as well as official data on factory orders and crude oil stockpiles. In addition, the Institute of Supply Management was to produce a report on service sector activity.

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