The euro edged higher in early deals Monday, paring most of its Asian session decline, as European bourses are trading green, despite lingering worries over global economic growth prospects.
China's better-than expected trade data soothed the market, with exports rising almost 10 percent year-over-year to $186.35 billion in the month on improved overseas demand. However, gains were capped by market judgment that the better export figures could be due to some indirect factors, attributed to mid-autumn festival and the golden week.
A separate report from the National Bureau of Statistics showed that China's inflation rate eased further in September, giving policymakers more leeway to pursue appropriate policies should the economy deteriorate further.
Germany's DAX rose 0.85 percent, the U.K.'s FTSE 100 jumped 0.52 percent and France's CAC 40 advanced 1.38 percent around 6:00 am ET.
The European shared currency was down in the Asian session as traders took cautious stand ahead of a EU Summit in Brussels, which is kicking off on Thursday night. The EU leaders are expected to discuss the unaddressed issues in Europe, especially the issues surrounding Greece and Spain.
Market participants are also cautious ahead of this week's major earnings reports, which include third quarter results of Citigroup, Goldman Sachs and Bank of America.
The euro rose above the key 102.0 level against the yen for the first time after a gap of a week, rising as much as 102.11 around 5:30 am ET, up 0.52 percent from Friday's close of 101.57.
A triangle pattern is being underway in the daily chart of the euro-yen pair with top-line resistance visible above the 100.20 level and a bottom-line channel support is seen below 100.30.
Rebounding from its Asian session's steep losses, the euro rose as high as 1.2970 against the US dollar before leveling off around 5:00 am ET.
A triangle formation is also in the progress in the daily chart of the euro-buck pair with a potential breakout is being seen at 1.2840/50 on the downside and 1.3015/20 visible on the upside.
The Federal Reserve chairman Ben Bernanke has defended the central bank's measures to bolster the world's largest economy, saying the central bank's highly simulative monetary policy is not the "dominant" force behind surging capital flows to emerging market economies.
The euro reversed its Asian session decline against the pound in early deals, snapping back to 0.8076 around 4:50 am ET from a 4-day low of 0.8042 hit in the Asian session. On the upside, the cross is expected to move beyond the key 0.81 mark after a 6-day gap.
House prices in the United Kingdom increased in October, reversing much of the losses recorded in the summer, the latest survey by Rightmove showed.
The average asking prices of a property in the U.K. rose 3.5 percent month-over-month in October to 243,168 pounds. This was the biggest increase for eight months and followed 0.6 percent drop in September.
The euro also inched higher to 1.2098 against the Swiss franc in early deals from Asian session's 4-day low of 1.2081. However, the pair failed to move above the key 1.20 level.
Switzerland's producer and import price rose 0.3 percent year-on-year in September, reversing a 0.1 percent fall last month, the Federal Statistical Office said Monday.
On a monthly basis, the producer and import price index gained 0.3 percent, mainly attributable to the rise in the price of oil and petroleum products. The September increase follows a 0.5 percent growth in August.
Looking ahead, the U.S. advance retail sales for September, empire manufacturing for October and business inventories for August are expected to influence trading in the New York morning session.
For comments and feedback contact: editorial@rttnews.com
Forex News
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.