Euro Rises Amid Risk Appetite
July 31 2015 - 4:00AM
RTTF2
The euro strengthened against most major currencies ahead of
European session on Friday amid risk appetite, with some companies
posting strong gains in the corporate earnings.
The U.K.'s FTSE 100 index is currently up 0.57 percent or 37.87
points at 6,668, France's CAC 40 index is up 0.58 percent or 28.9
points at 5,046 and Germany's DAX is up 0.40 percent or 45.30
points at 11,257.
Traders await the eurozone data, such as inflation and
unemployment figures, due to be released shortly. Flash inflation
is forecast to remain unchanged at 0.2 percent in July. The jobless
rate is expected to drop to 11 percent in June from 11.1 percent in
May.
EU harmonized inflation is seen rising to 0.3 percent in July
from 0.2 percent in June.
In Greece, the Hellenic nation's Prime Minister Alexis Tsipras
will hold an emergency party congress in September to reassert his
control over the left-wing Syriza party, who opposed bailout
talks.
In other economic news, data from Destatis showed Germany's
retail sales fell a calendar and seasonally adjusted 2.3 percent
month-on-month in June, in contrast to a 0.4 percent rise in May.
Economists had expected a 0.3 percent increase for the month. It
was the first fall in three months.
On an annual basis, retail sales grew 5.1 percent in June,
exceeding economists' expectations for a 4.0 percent hike. In May,
sales had dropped 1.0 percent, which was revised from a 0.4 percent
decline.
In the Asian trading, the euro held steady against its major
rivals.
Ahead of European session today, the euro rose to a 3-day high
of 1.6662 against the NZ dollar and a 2-day high of 1.4269 against
the Canadian dollar, from early lows of 1.6515 and 1.4200,
respectively. If the euro extends its uptrend, it is likely to find
resistance around 1.68 against the kiwi and 1.45 against the
loonie.
The euro advanced to 0.7025 against the pound and 136.09 against
the yen, from early lows of 0.7002 and 135.57, respectively. The
euro may test resistance near 0.71 against the pound and 137.00
against the yen.
Against the U.S. and the Australian dollars, the euro edged up
to 1.0966 and 1.5046 from early lows of 1.0927 and 1.4973,
respectively. On the upside, 1.11 against the greenback and 1.53
against the aussie are seen as the next resistance levels for the
euro.
Looking ahead, Eurozone unemployment rate for June and CPI for
July are set to be published shortly.
In the New York session, Canada GDP for May, U.S. Chicago PMI
for July and University of Michigan's final U.S. consumer sentiment
index for July are due.
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