Euro Advances Amid Hawkish Comments From ECB Officials
November 24 2023 - 2:16AM
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The euro was higher against its most major counterparts in the
European session on Friday, as market participants lowered
expectations for rate cuts following comments from policymakers of
the European Central Bank.
ECB governing council member Robert Holzmann remarked that the
likelihood of another rate hike is no smaller than that of rate
cuts.
Bundesbank President Joachim Nagel said on Thursday that the ECB
must resist any temptation to cut interest rates early.
Nagel also said he was "skeptical" about the risk of a 'hard
landing' for the euro zone economy caused by the monetary policy
squeeze.
In economic releases, official data showed the German economy
contracted slightly in the third quarter compared with the previous
three months.
GDP declined 0.1 percent sequentially, confirming a first
estimate, published in late October as the country languishes in a
likely recession.
The euro edged up to 1.0920 against the greenback and 0.9647
against the franc, off its early lows of 1.0895 and 0.9625,
respectively. The currency is seen finding resistance around 1.12
against the greenback and 0.98 against the franc.
The euro rose to 163.28 against the yen, reaching a 4-day high.
On the upside, 166.00 is possibly seen as its next resistance
level.
In contrast, the euro eased to 1.4926 against the loonie and
1.6602 against the aussie, from its prior highs of 1.4948 and
1.6635, respectively. The next likely support for the euro is seen
around 1.46 against the loonie and 1.61 against the aussie.
The euro dropped to a 9-day low of 1.7987 against the kiwi and
more than a 2-week low of 0.8681 against the pound, from its early
highs of 1.8032 and 0.8707, respectively. The euro is poised to
challenge support around 1.74 against the kiwi and 0.84 against the
pound.
Looking ahead, Canada retail sales for September are due out in
the New York session.
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