logo
Plus   Neg
Share
Email

Euro Strengthens Amid Risk Appetite

The euro climbed against its major counterparts in the European session on Monday, as European shares rose after media reports suggesting merger talks of Commerzbank with rival Commerzbank helped investors shrug off global growth worries.

Traders also reacted positively to comments from Fed Chair Jerome Powell that interest rates are currently "appropriate" and "roughly neutral.

After Prime Minister Theresa May failed to secure significant concessions from the European Union in the latest round of talks, and with just two cabinet ministers backing her, she is facing increasing pressure to resign, the Telegraph reported.

It is believed that Tuesday's vote on her Brexit deal could result in an even worse humiliation.

Preliminary data from the Federal Statistical Office showed that Germany's industrial production unexpectedly decreased in January and exports were unchanged, defying forecasts for a fall.

Industrial production decreased 0.8 percent month-on-month in January, while economists had predicted a 0.5 percent gain.

December's outcome was revised from a 0.4 percent decline to a 0.8 percent gain.

The currency showed mixed trading against its major counterparts in the Asian session. While it rose against the franc and the yen, it held steady against the greenback and the pound.

The euro strengthened to a 4-day high of 1.1258 against the greenback, from a low of 1.1223 hit at 8:30 pm ET. The euro is seen finding resistance around the 1.14 level.

Having fallen to 124.48 against the yen at 8:45 pm ET, the euro reversed direction and appreciated to a 4-day high of 125.20. If the euro extends rise, 126.00 is likely seen as its next resistance level.

Data from the Bank of Japan showed that Japan M2 money stock rose 2.4 percent on year in February - coming in at 1,010.1 trillion yen.

That was in line with expectations and up from the downwardly revised 2.3 percent in January.

The European currency firmed to a 2-week high of 0.8676 against the pound and held steady thereafter. The next key resistance level for the euro is seen around the 0.88 level.

The euro that ended last week's deals at 1.1320 against the Swiss franc climbed to a 4-day high of 1.1345. The euro is likely to challenge resistance around the 1.16 area.

The euro edged up to 1.5102 against the loonie, from Friday's closing value of 1.5071. The euro is poised to challenge resistance around the 1.51 area.

Looking ahead, U.S. retail sales for January and business inventories for December are due in the New York session.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT