Euro Higher As German GDP Improves, ZEW Economic Sentiment Hits 6-Month High
November 14 2017 - 2:57AM
RTTF2
The euro traded higher against its key counterparts in the
European session on Tuesday, as German economic growth accelerated
in the third quarter and ZEW economic sentiment indicator rose to a
6-month high in November, boosting confidence in Europe's
powerhouse.
Data from the Federal Statistical Office showed that Germany's
gross domestic product grew 0.8 percent sequentially, faster than
the 0.6 percent expansion logged in the second quarter. The growth
rate was forecast to remain at 0.6 percent.
On a yearly basis, GDP climbed calendar-adjusted 2.8 percent,
following the 2.3 percent growth seen a quarter ago. GDP was
expected to climb again by 2.3 percent.
Survey data from Mannheim-based think tank ZEW showed that
Germany's economic confidence rose to a 6-month high in
November.
The ZEW Indicator of Economic Sentiment for Germany rose to 18.7
in November from 17.6 in October. This was the highest score since
May, when the reading was 20.6.
Nonetheless, the score was below the expected level of 19.5.
Speaking at an ECB conference in Frankfurt, the European Central
Bank President Mario Draghi said that the bank's "forward guidance"
has evolved into a full-fledged monetary policy tool and has been
successful. "Forward guidance has become a full-fledged monetary
policy instrument," Draghi told. The currency showed mixed trading
in the Asian session. While it held steady against the greenback
and the franc, it rose against the pound and the yen. The single
currency rose to near a 3-week high of 0.8955 against the pound,
compared to 0.8894 hit late New York Monday. Continuation of the
euro's uptrend may see it challenging resistance around the 0.91
region. Data from the Office for National Statistics showed that UK
consumer prices logged a steady growth in October and output price
inflation slowed further.
Consumer prices climbed 3 percent year-on-year in October, the
same pace as seen in September. Prices were forecast to rise 3.2
percent. The euro strengthened to 1.1730 against the greenback, its
strongest since October 26. The euro is seen finding resistance
around the 1.185 area. The 19-nation currency climbed to near a
2-week high of 1.1664 against the Swiss franc from Monday's closing
value of 1.1624. If the euro-franc pair extends rise, 1.18 is
likely seen as its next resistance level. The euro spiked up to
near a 3-week high of 133.38 against the yen, from an early low of
132.48. The next possible resistance for the euro-yen pair is seen
around the 134.5 mark. The common currency advanced to an 11-day
high of 1.4943 against the loonie and near a 3-week high of 1.5381
against the aussie, off its early lows of 1.4849 and 1.5279,
respectively. On the upside, 1.51 and 1.55 are likely seen as the
next resistance levels for the euro against the loonie and the
aussie, respectively. The European currency extended early gains to
near a 3-week high of 1.7085 against the kiwi and stabilized
thereafter. Next key resistance for the euro is seen around the
1.72 region. Looking ahead, U.S. producer prices for October are
due in the New York session.
At 12:30 pm ET, the Bank of England Deputy Governor Jon Cunliffe
speaks at the Oxford Economics Society.
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Aug 2024 to Sep 2024
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Sep 2023 to Sep 2024