Euro Advances Amid Risk Appetite
December 18 2017 - 2:03AM
RTTF2
The euro climbed against its major rivals in the European
session on Monday amid risk appetite, with positive economic data
from China and Japan as well as U.S. tax reform hopes helping
underpin investor sentiment.
The U.S. Congress is likely to pass tax reform bill this week,
as Sens. Marco Rubio and Bob Corker dropped their opposition and
indicated that they would back the current version of the bill.
U.S. President Donald Trump delivers a national-security speech
today on his 'America First' policy and it is expected that he will
label China a competitor.
The U.S. and U.K. will be publishing updated estimates of
third-quarter GDP this week while the Bank of Japan meets to set
monetary policy.
News that the centre-left Social Democrats had agreed to enter
into exploratory coalition talks with the Christian Democrats
raised hopes that Angela Merkel may be able to forge some form of
coalition.
Final data from Eurostat showed that Eurozone consumer price
inflation rose slightly as estimated in November.
Consumer prices advanced 1.5 percent year-on-year in November,
following October's 1.4 percent increase. The rate came in line
with the flash estimate published on November 30.
The currency rose against its major rivals in the Asian session,
with the exception of the pound.
The euro that closed last week's deals at 0.8814 against the
pound rose to 0.8841. Continuation of the euro's uptrend may lead
it to a resistance around the 0.90 region.
Monthly Industrial Trends survey from the Confederation of
British Industry showed that UK manufacturing order books were
close to a 30-year high in the fourth quarter.
About 28 percent of manufacturers reported that total order
books were above normal, and 11 percent said they were below
normal, giving a balance of +17 percent, which was the joint
highest with last month and August 1988.
Reversing from an early 5-day low of 1.1737 against the
greenback, the euro climbed to 1.1798. If the euro climbs further,
it may locate resistance around the 1.185 mark.
The euro advanced to a 2-day high of 132.87 against the Japanese
yen, after having fallen to 132.12 at 5:15 pm ET. Further uptrend
may take the euro to a resistance around the 133.5 zone.
Data from the Ministry of Finance showed that Japan logged a
merchandise trade surplus of 113.357 billion yen in November.
That beat forecasts for a deficit of 40.0 billion yen following
the 285.4 billion yen surplus in October.
The single currency climbed to 1.1668 against the Swiss franc,
off its early 5-day low of 1.1626, and held steady thereafter. The
euro is seen challenging resistance around the 1.18 zone. The
19-nation currency spiked up to a 2-day high of 1.5191 against the
loonie, from a low of 1.5104 hit at 5:00 pm ET. The next possible
resistance for the euro is seen around the 1.53 region.
The euro rose to 1.5407 against the aussie and 1.6841 against
the kiwi, from its early low of 1.5342 and more than 5-week low of
1.6745, respectively. Further uptrend may take the euro to
resistance levels of around 1.55 against the aussie and 1.69
against the kiwi.
Looking ahead, U.S. NAHB housing market index for December is
set for release in the New York session.
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