Wednesday, the euro edged higher against its U.S., U.K. and Japanese counterparts, driven by a rise in European stocks.
European shares bounced back today to trade near their highest level in more than 13 months, with investors waiting for U.S. inflation and housing starts figures later in the day for clearer market direction.
At 5:03 am ET, the FTSEurofirst 300 .FTEU3 index of top European shares was up 0.3 percent at 1,033.22 points after falling 0.4 percent in the previous session. A rise above 1,035.59 would be the highest level since October last year.
The index, which slumped 45 percent last year, is up 24 percent in 2009 and has surged 60 percent since hitting a record low in early March.
In economic news, the Eurozone recorded a current account deficit of EUR 5.4 billion in September, on a working day and seasonally adjusted basis, after registering surpluses in the previous two months, the European Central Bank said today. In August, the surplus stood at EUR 0.6 billion, smaller than a EUR 5.1 billion surplus in July.
Against the US dollar, the European currency traded higher during early deals on Wednesday. At 5:00 am ET, the euro-dollar pair reached a high of 1.4961, compared to 1.4877 hit late New York Tuesday. The next upside target level for the pair is seen around 1.502.
The single currency that closed Tuesday's North American session at 0.8851 against the British pound climbed to 0.8911 at 4:30 am ET Wednesday. The euro-pound pair is currently trading at 0.8888 with 0.901 seen as the next target level.
Among the nine policy makers of the Bank of England's rate-setting body, seven voted to raise the size of the asset purchase by GBP 25 billion to GBP 200 billion in November, even as a member sought a bigger increase, while another chose to maintain status quo, the minutes of the meeting revealed today. The Monetary Policy Committee meeting was held on November 4 and 5.
David Miles sought GBP 40 billion increase, in order to provide greater insurance against the downside risks to growth and inflation arising from constrained credit supply. Spencer Dale preferred to leave the size of the asset purchase programme unchanged at a total of GBP 175 billion.
The euro edged down against the Swiss franc during Wednesday's early deals. At 3:40 am ET, the euro-franc pair slipped to 1.5109, compared to Tuesday's closing value of 1.5117. On the downside, 1.508 is seen as the next target level for the pair.
The 16-nation currency gained ground after hitting a low of 132.60 against the Japanese yen during today's early Asian deals. The euro-yen pair that closed yesterday's New York deals at 132.78 is currently trading at 133.23. If the pair gains further, 134.4 is seen as the next target level.
From the U.S., the consumer price index for October is scheduled to be released at 8:30 am ET. The consensus estimates call for a 0.2% increase in the headline consumer price index, while the core consumer price index that excludes food and energy is expected to have remained unchanged.
At the same time, a report on housing starts, is also due out. Economists estimate housing starts of 585,000 for October.
The Energy Information Administration is scheduled to release its weekly petroleum inventory report for the week ended November 13th at 10:30 am ET.
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