Euro Rises As Eurozone Inflation Improves
June 15 2018 - 2:14AM
RTTF2
The euro advanced against its most major opponents in the
European session on Friday, after a data showed that Eurozone
consumer prices increased as estimated in May.
Final data from Eurostat showed that inflation rose to 1.9
percent in May from revised 1.3 percent in April. A similar high
rate was last seen in April 2017.
The latest rate matched the initial estimate released on May 31.
Inflation was in line with the European Central Bank's target of
'below, but close to 2 percent'.
Core inflation that excludes cost of energy, food, alcohol and
tobacco, also increased in May, to 1.1 percent from revised 0.8
percent a month ago. Final data came in line with flash
estimate.
On a monthly basis, the harmonized index of consumer prices
gained 0.5 percent in May.
Data from Destatis showed that Germany's wholesale prices
increased at the fastest pace in six months in May.
Wholesale prices advanced 2.9 percent year-on-year in May,
faster than the 1.4 percent increase seen in April. This was the
fastest growth since November, when prices gained 3.3 percent.
Meanwhile, European shares were mixed amid renewed trade worries
after China said it would retaliate with tariffs of its own if the
U.S. goes ahead with its plans to impose punishing tariffs on tens
of billions of dollars of Chinese goods.
The euro was lower against its most major counterparts in the
Asian session, as the European Central Bank planned to keep
interest rates unchanged until 2019 and extend QE purchases to
year-end.
Following more than a 2-week low of 1.1543 hit at 3:00 am ET,
the euro appreciated to 1.1615 against the greenback. The euro is
poised to challenge resistance around the 1.17 level.
The 19-nation currency bounced off to 1.1571 against the Swiss
franc, from a 10-day low of 1.1525 seen at 5:00 pm ET. The next
likely resistance for the euro is seen around the 1.17 level.
The single currency was trading higher at 128.24 against the
yen, up from an 11-day low of 127.70 touched at 8:45 pm ET. The
euro is seen finding resistance around the 129.00 region.
The Bank of Japan kept its monetary stimulus unchanged as widely
expected.
Governor Haruhiko Kuroda and his board members decided by an 8-1
majority vote to hold its target of raising the amount of
outstanding JGB holdings at an annual pace of about JPY 80
trillion.
The euro edged up to 1.5539 against the aussie, 1.6707 against
the kiwi and 1.5254 against the loonie, from its early lows of
1.5464, 1.6573 and 1.5151, respectively. The next possible
resistance for the euro is seen around 1.57 against the aussie,
1.69 against the kiwi and 1.55 against the loonie.
The euro climbed to 0.8750 against the pound, from an early
session's low of 0.8722, and held steady thereafter. At yesterday's
close, the pair was worth 0.8723.
Looking ahead, Canada existing home sales for May and
manufacturing sales for April, New York Fed's empire manufacturing
survey for June, U.S. industrial production for May and University
of Michigan's preliminary consumer sentiment index for June are
scheduled for release in the New York session.
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