Euro Higher After ECB Minutes
November 25 2021 - 5:02AM
RTTF2
The euro was higher against its most major counterparts in the
European session on Thursday, as the European Central Bank's
minutes from the latest meeting showed that the Governing Council
is prepared to make a decision at the December meeting regarding an
end to net purchases under the pandemic emergency purchase
programme by March 2022.
"With regard to the upcoming Governing Council meeting in
December, the view was held that, judging on the basis of the
current developments, net purchases under the PEPP could be
expected to come to an end by March 2022, in line with the date
that the Governing Council had announced in its previous
communication," the minutes from the bank's October 27 and 28
meeting showed.
ECB policymakers agreed that price pressures were more
persistent than had been estimated in the September ECB staff
projections.
Members stressed that the current outlook clearly lacked the
stagnation element. Although the growth momentum was declining, it
was within a still strong recovery and with robust rates of growth
in activity.
Members widely agreed that the effects of higher energy prices
and supply bottlenecks would be temporary, but the decline in
inflation in 2022 would take longer than previously expected.
The policymakers emphasized that the uncertainty around the
medium-term inflation prospects was seen as elevated.
"While an increase in the upside risks to inflation had to be
acknowledged, it was deemed important for the Governing Council to
avoid an overreaction as well as unwarranted inaction, and to keep
sufficient optionality in calibrating its monetary policy measures
to address all inflation scenarios that might unfold," the minutes
added.
Revised data from Destatis showed that the German economy
expanded slightly less than estimated in the third quarter.
Gross domestic product grew 1.7 percent sequentially in the
third quarter, instead of 1.8 percent estimated on October 29.
The euro gained against its major counterparts in the Asian
session, except the pound.
The euro touched an 8-day high of 0.8436 against the pound, up
from yesterday's close of 0.8402. The euro may test resistance
around the 0.86 region, if it gains again.
The euro edged up to 1.1230 against the greenback and 1.4229
against the loonie, from Wednesday's closing values of 1.1198 and
1.4177, respectively. The euro is seen locating resistance around
1.15 against the greenback and 1.44 against the loonie.
The euro climbed to a 6-day high of 1.5631 against the aussie
and more than a 5-week high of 1.6396 against the kiwi, compared to
Wednesday's closing quotes of 1.5553 and 1.6279, respectively. The
euro is likely to target resistance around 1.58 against the aussie
and 1.66 against the kiwi.
The European currency rose to 1.0485 against the franc, from a
3-day low of 1.0452 seen at 5:15 pm ET. At Wednesday's close, the
pair was valued at 1.0457. The next likely resistance for the euro
is seen around the 1.065 level.
In contrast, the euro pulled back against the yen, with the pair
trading at 129.34. The pair was worth 129.25 when it ended deals on
Wednesday. The euro may locate support around the 128.00 level.
Final data from the Cabinet Office showed that Japan's leading
index decreased less than estimated in September.
The leading index, which measures the future economic activity,
fell to 100.9 in September from 101.3 in August. In the initial
estimate, the reading was 99.7.
Euro vs AUD (FX:EURAUD)
Forex Chart
From Apr 2024 to May 2024
Euro vs AUD (FX:EURAUD)
Forex Chart
From May 2023 to May 2024