Euro Advances After German Business Climate Hits 17-month High
November 23 2015 - 11:50PM
RTTF2
The euro strengthened against the other major currencies in the
early European session on Tuesday, after data showed that the
German business confidence in November rose unexpectedly to the
highest level since 2014.
Data from the Ifo Institute showed that the business climate
index rose to 109 in November from 108.2 in October. It was
expected to remain unchanged at 108.2.
The current conditions index came in at 113.4. Economists had
forecast the indicator to fall to 112.4 from around 112.7 in
October.
The expectations index also strengthened in November. The
corresponding index rose to 104.7 from about 103.8 in previous
month. It was above the expected reading of 104.
In other economic news, data from Destatis showed that Germany's
gross domestic product advanced 0.3 percent from the prior quarter,
in line with the preliminary estimate published on November 13. But
the pace of growth eased from 0.4 percent expansion seen in the
previous quarter.
On a yearly basis, the calendar-adjusted GDP growth improved to
1.7 percent from 1.6 percent. Likewise, growth in price-adjusted
GDP increased to 1.8 percent from 1.6 percent.
In the Asian trading today, the euro held steady against its
major rivals.
In the early European trading, the euro rose to a 6-day high of
0.7053 against the pound, from an early low of 0.7015. The euro is
likely to find resistance around the 0.72 area.
Against the U.S. and the Australian dollars, the euro advanced
to 4-day highs of 1.0669 and 1.4832 from early lows of 1.0620 and
1.4738, respectively. If the euro extends its uptrend, it is likely
to find resistance around 1.09 against the greenback and 1.51
against the aussie.
The euro edged up to 130.61 against the yen and 1.0852 against
the Swiss franc, from early lows of 130.37 and 1.0818,
respectively. On the upside, 132.00 against the yen and 1.09
against the franc are seen as the next resistance levels for the
euro.
Against the New Zealand and the Canadian dollars, the euro
climbed to 1.6346 and 1.4236 from early lows of 1.6273 and 1.4169,
respectively. The euro may test resistance near 1.67 against the
kiwi and 1.45 against the loonie.
Looking ahead, at 5:00 am ET, Bank of England Governor Mark
Carney and other policymakers Andy Haldane, Gertjan Vlieghe and
Kristin Forbes appear before British parliament's Treasury
Committee in London.
Bank of France new chief Francois Villeroy de Galhau holds news
conference on new 20-euro banknote in Paris at 5:30 am ET.
In the New York session, preliminary third quarter U.S. GDP
data, U.S. S&P/Case-Shiller home price index for September,
U.S. Richmond Fed manufacturing index for November and U.S.
consumer confidence index for November are set to be announced.
At 3:30 pm ET, Bank of Canada Deputy Governor Lynn Patterson
will give a presentation as part of the bank's regional outreach
program at the University of Regina in Canada.
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