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Euro Spikes Up Amid ECB Lagarde's Testimony

05:15, 2nd December 2019

(RTTNews) - The euro appreciated against its most major counterparts in early New York deals on Monday, after European Central Bank President Christine Lagarde said that the central remained resolute in its commitment to deliver on its price stability mandate.

Speaking before the European Parliament's economic affairs committee, Lagarde said that the Governing Council's decisions in September showed that it was alert to the potential side effects of monetary policy.

The review of the ECB's monetary policy strategy will start in the near future, the ECB chief told.

The strategy review will be guided by two principles - thorough analysis and an open mind.

Neverthless, Eurozone growth remained weak mainly due to the impact of global factors and there are signs of that the slowdown in manufacturing is spreading to other sectors, Lagarde added.

Inflation remained subdued and price growth expectations are at or close to historical lows, she said.

Final data from IHS Markit showed that the euro area manufacturing sector continued to contract in November but the pace of declined slowed from October.

The factory Purchasing Managers' Index improved to 46.9 in November from 45.9 in October and above the flash 46.6.

Separate data showed that German PMI rose to a five-month high of 44.1 in November from 42.1 in October. This was above the preliminary estimate of 43.8.

The euro appreciated to a 10-day high of 1.1045 against the greenback from last week's closing value of 1.1015. The euro may find resistance around the 1.13 level.

The euro spiked up to 121.02 against the yen, its biggest since November 7. If the euro rises further, 123.00 is likely seen as its next resistance level.

The single currency approached a session's high of 0.8543 against the pound, after falling as low as 0.8514 at 7:00 am ET. Next key resistance for the euro is seen around the 0.87 level.

The 19-nation currency that closed Friday's trading at 1.4627 against the loonie strengthened to a 10-day high of 1.4689. The euro is seen finding resistance around the 1.49 level.

In contrast, the euro remained steady against the franc, after touching a 5-day low of 1.0983 at 6:45 am ET. This may be compared to nearly a 4-week high of 1.1028 hit at 7:45 pm ET. At Friday's close, the pair was worth 1.1017.

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