Euro Rises On Strong Eurozone Economic Data
April 30 2024 - 2:32AM
RTTF2
The euro strengthened against other major currencies in the
Asian session on Tuesday, after data showed that the euro area
economy expanded in the first quarter after two consecutive
declines and also the consumer prices registered a steady growth in
April.
A preliminary flash estimate from Eurostat showed that the
Eurozone Gross domestic product grew by more-than-expected 0.3
percent on quarter following a 0.1 percent fall each in the fourth
and third quarters of 2023.
Thus, the economy recovered from a recession. GDP was expected
to rise 0.1 percent in the first quarter.
On a yearly basis, GDP growth accelerated to 0.4 percent from
0.1 percent in the previous quarter. This was also better than
forecast of 0.2 percent.
The Eurozone harmonized index of consumer prices grew 2.4
percent on a yearly basis, the same rate as seen in March and
matched economists' expectations.
Month-on-month, the HICP grew 0.6 percent and core consumer
prices rose 0.7 percent in April.
Investors looked forward to the Federal Reserve providing an
update on when interest rates might be cut.
The European currency held steady against its major rivals in
the Asian trading today.
In the European trading now, the euro rose to a 4-day high of
1.0727 against the U.S. dollar, from an early 4-day low of 1.0689.
The euro may test resistance near the 1.09 region.
Against the pound, the Swiss franc and the yen, the euro
advanced to 0.8553, 0.9779 and 168.37 from early lows of 0.8530,
0.9754 and 167.23, respectively. If the euro extends its uptrend,
it is likely to find resistance around 0.86 against the pound, 0.98
against the franc and 171.00 against the yen.
Against the Australia and the New Zealand dollars, the euro
climbed to 4-day highs of 1.6431 and 1.8048 from early lows of
1.6324 and 1.7938, respectively. The next possible upside target
for the euro is seen around 1.66 against the aussie and 1.81
against the kiwi.
The euro advanced to a 5-day high of 1.4688 against the Canadian
dollar, from an early an early low of 1.4636. The euro is likely to
find resistance around the 1.47 region.
Looking ahead, Canada GDP data for April, U.S. employment cost
index for the first quarter, Redbook report, house price index for
February, U.S. Chicago PMI for April, U.S. CB consumer confidence
for April and U.S. Dallas Fed services index for April are slated
for release in the New York session.
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