Euro Rises Ahead Of ECB Minutes
October 08 2015 - 1:37AM
RTTF2
The euro strengthened against most major currencies in the early
European session on Thursday, as traders await the release of the
European Central Bank's minutes of the monetary policy meeting in
September, due later in the day.
The minutes could provide more insights regarding Governing
Council's discussion of additional stimulus, given slowing global
growth and low inflation.
Moreover, U.S. jobless claims figures, the minutes from the
Fed's September meeting and speeches from Fed officials John
Williams, James Bullard and Narayana Kocherlakota are also largely
awaited for further clues on the outlook for Fed policy.
Although the currency trimmed some of its gains after after weak
German data, it climbed back in a short while.
Data from Destatis showed that Germany's exports declined at the
fastest pace in more than six years in August. Exports plunged by
seasonally adjusted 5.2 percent month-on-month in August, reversing
a 2.2 percent rise in July. This was the biggest decline since
January 2009, when it slid 6.9 percent. At the same time, imports
dropped 3.1 percent, in contrast to a 2.3 percent rise seen a month
ago.
The trade surplus decreased to around EUR 19.6 billion from EUR
22.4 billion in July.
In Greece, the nation's Prime Minister Alexis Tsipiras won the
confidence vote, targeting to pass his key reform laws to revive
the economy ahead of a crucial first review of its international
bailout.
In the Asian session today, the euro held steady against its
major rivals.
In the early European trading, the euro rose to a 6-day high of
1.1309 against the U.S. dollar, from an early low of 1.1234. If the
euro extends its uptrend, it is likely to find resistance around
the 1.15 area.
Against the pound, the yen and the NZ dollar, the euro advanced
to 0.7379, 135.36 and 1.7124 from early lows of 0.7334, 134.72 and
1.6953, respectively. The euro may test resistance near 0.74
against the pound, 136.00 against the yen and 1.75 against the
kiwi.
Against the Australian and the Canadian dollars, the euro
climbed to a 2-day high of 1.5761 and a 3-day high of 1.4761 from
early lows of 1.5575 and 1.4667, respectively. On the upside, 1.60
against the aussie and 1.50 against the loonie are seen as the next
resistance levels for the euro.
Meanwhile, the euro fell to 1.0915 against the Swiss franc, from
an early 9-day high of 1.0948. The euro is likely to find support
around the 1.08 region.
Data from the State Secretariat for Economic Affairs or SECO
showed that Switzerland's unemployment rate rose in September in
line with economists' expectations. The seasonally adjusted jobless
rate climbed to 3.4 percent from 3.3 percent in August.
Looking ahead, in the European session, the Bank of England will
announce its interest rate decision at 7:00 am ET. Economists
expect the bank to retain interest rates unchanged at 0.50 percent
and asset purchase target at GBP 375 billion.
Half-an-hour later, European Central Bank minutes of the
September monetary policy meeting is slated for release.
In the New York session, Canada housing starts for September and
house price index for August and U.S. weekly jobless claims for the
week ended October 3, are set to be released.
At 9:30 am ET, Federal Reserve Bank of St. Louis President James
Bullard gives welcome remarks before the Children's Saving Account
Symposium hosted by the Federal Reserve Bank of St. Louis.
At 2:00 pm ET, Federal Reserve releases minutes from September
16-17 FOMC meeting.
At the same time, Bank of England Governor Mark Carney will
participate in a panel discussion about the global economy at the
International Monetary Fund meeting, in Lima.
At 3:30 pm ET, Federal Reserve Bank of San Francisco President
John Williams is expected to speak about the economic outlook at
the Spokane Business and Community Leaders' Luncheon, in San
Francisco.
Euro vs NZD (FX:EURNZD)
Forex Chart
From Mar 2024 to Apr 2024
Euro vs NZD (FX:EURNZD)
Forex Chart
From Apr 2023 to Apr 2024