Euro Broadly Higher Ahead Of ECB Announcement
June 06 2019 - 3:20AM
RTTF2
The euro climbed against its most major counterparts in the
European session on Thursday, as investors await the European
Central Bank's policy decision today, at which the central bank is
set to give details of targeted longer-term refinancing operations
or TLTROs for banks to prop up the economy.
The Governing Council, which is holding its two-day meeting in
the Lithuanian capital Vilnius, is expected to keep key rates
unchanged.
The new series of targeted longer-term refinancing operations,
or TLTRO-III, is set to start in September this year and end in
March 2021. Investors await whether ECB President Mario Draghi will
shift to a more dovish tone in the wake of a sharp slowdown in the
euro area inflation and rising global uncertainties.
Data from Eurostat showed that the euro area economy expanded as
initially estimated in the second quarter, mainly driven by
household spending and investment.
Gross domestic product grew 0.4 percent sequentially, in line
with the previous estimate and bigger than the 0.2 percent growth
seen in the fourth quarter of 2018.
The currency traded mixed against its major counterparts in the
Asian session. While it rose against the greenback and the pound,
it held steady against the franc. Against the yen, it dropped.
The euro advanced to 1.1184 against the franc, from a low of
1.1155 hit at 2:30 am ET. If the euro rallies further, 1.13 is
likely seen as its next resistance level.
The euro edged up to 1.1243 against the greenback, after
dropping to 1.1221 at 5:00 pm ET. The euro is seen finding
resistance around the 1.14 region.
Following a 2-day low of 121.30 hit at 2:30 am ET, the euro
bounced off to 121.69 against the yen. The next possible resistance
for the euro is seen around the 124.00 level.
The euro edged up to 1.6961 against the kiwi, reversing from
more than a 4-week low of 1.6929 touched at 10:45 pm ET. The euro
is likely to test resistance around the 1.72 level.
On the flip side, the euro eased back to 0.8849 against the
pound, not far from a 3-day low of 0.8840 recorded at the beginning
of today's trading. On the downside, 0.86 is possibly seen as the
next support level for the euro.
The euro eased back to 1.5061 against the loonie, heading to
pierce a 6-day low of 1.5051 hit at 5:00 pm ET. The euro is poised
to test support around the 1.48 mark.
The euro retreated to 1.6094 against the aussie, from a high of
1.6123 set at 9:30 pm ET. The euro is finding support around the
1.57 region.
Looking ahead, at 7:45 am ET, the European Central Bank
announces its decision on interest rates. The central bank is
widely forecast to keep refi rate at 0.00 percent and the marginal
lending facility at 0.25 percent.
In the New York session, U.S. and Canadian trade data for April,
weekly jobless claims for the week ended June 1 and Canada Ivey PMI
for May are scheduled to be released.
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