Forex - EUR/USD hits 3-week high on ECB bond-buying speculation

(NASDAQ)- The euro jumped to a three-week high against the U.S. dollar on Wednesday, erasing earlier losses, amid speculation the European Central Bank was purchasing Spanish and Italian sovereign debt. 

EUR/USD pulled back from 1.4324 during European afternoon trade, a two-day low to hit 1.4490, the highest since July 27; the pair subsequently consolidated at 1.4478, up 0.49% on the day.

The pair was likely to find support at 1.4250, the low of August 15 and short-term resistance at 1.4535, the high of July 27.

The euro found support as speculation grew that the European Central Bank was buying Italian and Spanish government debt, in an effort to ease pressure on the region's third and fourth largest economies. Read more here…