Euro Climbs Against Majors
August 17 2012 - 4:11AM
RTTF2
The euro climbed against other major currencies in the early
European session on Friday as shares rose following strong U.S.
building permits data and Merkel's support for ECB action.
Expectations remain high for strong European Central Bank action
to stem the continent's debt crisis after German Chancellor Angela
Merkel said late Thursday that Germany is committed to do
everything they can to preserve the euro and assist indebted
countries.
Merkel supported ECB President Mario Draghi's announcements in
the last ECB meet, saying the move to save the euro and the
prospects of ECB buying Spanish and Italian debt are "completely in
line" with the approach taken by European leaders. She also called
for swifter integration of fiscal policies among block members,
adding time was running short to resolve the crisis.
In economic news, German producer price inflation eased to 0.9
percent in July from 1.6 percent in June, the Federal Statistics
Office said today.
Economists expected the rate to eased to 1.2 percent. A year
ago, the rate of inflation was 2.1 percent.
The euro advanced to a 2-day high of 0.7872 against the British
currency and a 3-day high of 1.2375 against the U.S. dollar,
compared to Thursday's close of 0.7856 and 1.2358, respectively.
The next upside target level for the euro is seen at 1.24 against
the greenback and 0.79 against the pound.
Against the yen, the euro approached a 7-week high of 98.29 with
99.00 seen as the next resistance level. The euro-yen pair was
worth 98.07 at yesterday's close.
The European single currency advanced to a 3-week high of 1.1851
against the Australian dollar and a 2-day high of 1.5313 against
the NZ counterpart and the euro may break 1.19 and 1.54 levels,
respectively on the upside. The euro closed Thursday's trading at
1.1761 against the aussie and 1.5253 against the kiwi.
Prices received by New Zealand producers rebounded in the June
quarter amid a surge in electricity costs, data from Statistics New
Zealand showed.
The output producer price index (PPI) gained 0.3 percent
quarter-on-quarter in the June quarter following a 0.1 percent
decline in the March quarter. Economists had forecast a 0.2 percent
fall.
Against the Canadian dollar, the euro edged up to as high as
1.2222 from Thursday's American session close of 1.2195. The next
resistance level for the euro-loonie pair is seen at 1.225.
The euro moved in a tight range against the Swiss currency,
trading between 1.2012 and 1.2014. The pair closed yesterday's
deals at 1.2013.
Looking ahead, Eurozone trade data for June is due shortly.
The U.S. leading economic indicators index for July and the
preliminary report of the Reuters/University of Michigan's consumer
sentiment survey for August and Canada's CPI for July are due in
the New York morning session.
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