Euro Climbs Against Most Majors On Risk Appetite, Inflation Data
September 17 2014 - 7:21AM
RTTF2
The euro advanced against most major rivals in European deals on
Wednesday, as Eurozone inflation was revised up in August, and amid
a gain in European stocks.
The final data from Eurostat showed that inflation in the euro
area rose to 0.4 percent on year in August. This is up from a 0.3
percent gain estimated earlier, but matched the July reading.
Meanwhile, inflation continues to stay below the European
Central Bank's target of 'below but close to 2 percent'.
Core inflation that excludes energy, food, alcohol and tobacco
rose marginally to 0.9 percent from 0.8 percent in July. The core
rate matched the flash estimate released on August 29.
China central bank's stimulus measures and expectations that the
Federal Reserve would keep its low rates unchanged for sometime
bolstered European stocks.
Media reports suggested that the People's Bank of China would
inject liquidity worth 500 billion yuan into the country's top five
commercial banks, to counter sluggish growth in the world's second
largest economy. These banks will receive a cash credit of 100
billion yuan each for a three-month period, said.
With the Federal Reserve on track to end its bond purchases by
October meeting, investors closely await its monetary policy
statement for any shift in its dovish stance. Although the Fed has
indicated it plans to hold interest rates near zero well into next
year, an improving jobs market and signs of inflation could prompt
rate hikes earlier in 2015.
The euro edged up to 1.2970 against the U.S. dollar from
Tuesday's closing value of 1.2955. The next possible resistance for
the euro-greenback pair lies around the 1.305 region.
The euro hit 139.19 against the yen, its highest since July 3.
At yesterday's close, the pair was worth 138.82. If the euro
continues its bullish trend, 140.00 is seen as its next possible
resistance level.
The euro firmed to a weekly high of 1.2113 against the Swiss
franc, compared to 1.2084 hit at yesterday's close. Further uptrend
may take the euro to a resistance around the 1.22 mark.
The euro that hit near 2-week low of 0.7933 against the pound at
4:30 am ET came off a bit and held steady shortly thereafter. The
pair traded at 0.7960 at yesterday's close.
The U.K. unemployment rate continued to fall in July, to the
lowest since late 2008, data from the Office for National
Statistics showed.
The ILO jobless rate fell to 6.2 percent in May to July, down
from 6.6 percent in February to April. The rate was seen at 6.3
percent.
Looking ahead, the U.S. CPI for August and NAHB housing market
index for September are set for release in the New York
session.
The FOMC's monetary policy announcement will be out at 12:00 pm
ET. Fed Chair Janet Yellen will hold a press conference at 12:30 pm
ET.
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Mar 2024 to Apr 2024
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Apr 2023 to Apr 2024