Euro Advances On ECB Rate Optimism
05 Juli 2018 - 10:10AM
RTTF2
The euro climbed against its major counterparts in the European
session on Thursday, following a media report showing that some
members of the European Central Bank belives that rate hike in late
2019 would be 'too late.'
Some European Central Bank policy makers are uneasy investors
aren't betting on an interest-rate increase until December 2019 and
see a move in September or October next year on the cards,
according to a report from Bloomberg.
The report triggered hopes that the ECB might hike rate sooner
than expected.
Investors also cheered data from Destatis showing that German
factory orders rebounded at a faster than expected pace in May.
Germany's factory orders grew 2.6 percent month-on-month in May,
in contrast to a revised 1.6 percent drop in April. Analysts
expected orders to climb 1.1 percent.
European stocks were higher, with automakers leading the gainers
amid reports that the Trump administration might suspend threats to
impose tariffs on cars imported from the European Union if the
block lifted duties on U.S. cars.
The euro climbed to 1.1711 against the greenback, its strongest
since June 26. If the euro continues its rise, 1.185 is possibly
seen as its next resistance level.
The single currency firmed to a 2-day high of 129.52 against the
yen, from a low of 128.58 hit at 11:45 pm ET. The euro is seen
finding resistance around the 131.00 level.
The euro appreciated to 1.1610 against the Swiss franc, a level
unseen since June 14. Next key resistance for the euro is likely
seen around the 1.175 level.
The common currency advanced to a session's high of 0.8841
against the pound, after falling to 0.8805 at 5:30 pm ET. On the
upside, 0.90 is possibly seen as the next resistance level for the
euro.
The euro strengthened to a 6-day high of 1.5382 against the
loonie, 2-day highs of 1.7284 against the kiwi and 1.5871 against
the aussie, from its early lows of 1.5314, 1.7209 and 1.5781,
respectively. The next likely resistance for the euro is seen
around 1.55 against the loonie, 1.74 against the kiwi and 1.60
against the aussie.
Looking ahead, U.S. ADP data for June, weekly jobless claims for
the week ended June 30, Markit's services PMI and ISM
non-manufacturing composite PMI for June are due in the New York
session.
At 2:00 pm ET, the Federal Reserve releases minutes from the
June 12-13 meeting.
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