The euro continued to be strong against the other major currencies in the Asian session on Wednesday in the wake of regional economic data showing that banks in the euro area eased lending standards in the third quarter, signaling that quantitative program is having its impact in economy.
Credit standards on loans to enterprises eased further in the third quarter, which was stronger than the previous survey round's expectations, the ECB's Bank Lending Survey showed Tuesday. The net percentage of banks reporting easing of credit conditions on loans to firms was -4 percent, higher than -3 percent recorded in the second quarter.
For the current quarter, "banks expect a further net easing in credit standards on loans to enterprises."
Regarding the impact of the ECB's expanded asset purchase programme, banks reportedly used additional liquidity from the programme to grant loans over the past six months, it said. That might lessen the need for the ECB to ramp up its 1 trillion euro asset purchase program.
Traders await the European Central Bank's policy meeting due tomorrow. Markets expect ECB's governing council to highlight a willingness to act to boost inflation, although expecting no change in policy for now.
Meanwhile, comments from the European Central Bank's Christian Noyer on Tuesday that the central bank's quantitative-easing plan represented the right amount of stimulus, also supported the currency.
Tuesday, the euro rose 0.07 against the U.S. dollar, 0.21 percent against the yen and 0.009 percent against the Swiss franc.
In the Asian trading, the euro rose to 6-day highs of 136.29 against the yen, 1.0861 against the Swiss franc and 1.6858 against the NZ dollar, from yesterday's closing quotes of 135.93, 1.0846 and 1.6796, respectively. If the euro extends its uptrend, it is likely to find resistance around 137.50 against the yen, 1.09 against the franc and 1.72 against the kiwi.
The euro advanced to a 2-day high of 0.7358 against the pound, from yesterday's closing value of 0.7345. On the upside, 0.74 is seen as the next resistance level for the euro.
Against the U.S., the Australian and the New Zealand dollars, the euro edged up to 1.1368, 1.5642 and 1.4746 from yesterday's closing quotes of 1.1343, 1.5623 and 1.4723, respectively. The euro is likely to find resistance around 1.15 against the greenback, 1.59 against the aussie and 1.52 against the loonie.
Looking ahead, U.K. public sector finance data for September is due to be released at 4:30 am ET.
In the New York session, U.S. mortgage approvals report, U.S. crude oil inventories data are slated for release.
The Bank of Canada will announce its interest rate decision at 10:00 am ET. Economists expect the bank to retain interest rates unchanged at 0.05 percent.
Subsequently, at 11:15 am ET, Bank of Canada Governor Stephen Poloz holds a press conference after the interest rate announcement.
At 1:00 pm ET, Bank of England Governor Mark Carney is expected to speak at the Cairncross Memorial Lecture, in Oxford.
Federal Reserve Governor Jerome Powell will participate in a panel discussion at the Evolving Structure of the US Treasury Market Conference in New York at 1:30 pm ET.
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December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.