Euro Climbs On Stimulus Hopes
August 11 2020 - 4:00AM
RTTF2
The euro turned higher against its major counterparts in the
European session on Tuesday, as hopes of a stimulus deal in
Washington and news of a coronavirus vaccine lifted European
shares. U.S. congressional leaders and officials in President
Donald Trump's administration said on Monday they were ready to
resume coronavirus aid talks.
President Donald Trump said that he was considering a capital
gains tax cut for creating more jobs to revive the stalling
economy.
Russian President Vladimir Putin announced that the country had
granted regulatory approval to the first official coronavirus
vaccine developed by the Gamaleya Research Institute and Defence
Ministry.
Survey data from the ZEW - Leibniz Centre for European Economic
Research showed that Germany's economic confidence improved notably
in August.
The ZEW Indicator of Economic Sentiment increased unexpectedly
to 71.5 in August from 59.3 in July. The score was forecast to fall
to 58.0.
After falling to an 8-day low of 1.1722 against the greenback
and a 1-week low of 124.29 against the yen in early trading, the
euro rose to 4-day highs of 1.1808 and 125.21, respectively. Next
key resistance for the euro is seen around 1.20 against the
greenback and 127.5 against the yen.
The euro gained to 1.0773 against the franc and 0.9009 against
the pound, up from its early near a 2-week low of 1.0735 and a new
4-week low of 0.8970, respectively. The euro may possibly challenge
resistance around 1.10 against the franc and 0.92 against the
pound.
The European currency hit a 5-day high of 1.7880 against the
kiwi, reversing from a 4-day low of 1.7732 set at 12:00 am ET. The
euro is likely to test resistance around the 1.82 level, if it
continues its rally.
The euro bounced off to 1.5688 versus the loonie and 1.6429
against the aussie, from its early new 2-week lows of 1.5647 and
1.6353, respectively. The euro is seen finding resistance around
1.58 versus the loonie and 1.66 against the aussie.
Looking ahead, Canada housing starts for July are set for
release at 8:15 am ET.
U.S. PPI for July will be out in the New York session.
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