Euro Climbs Amid Risk Appetite
The euro was higher against its key counterparts in the European
session on Thursday, as European shares rose following the Fed's
pledge to keep rates low to spur the economy and job growth.
Powell told the Economic Club of New York that the U.S. is still
"very far" from a strong labor market and more needs to be
Investors bet on additional fiscal stimulus after tame U.S.
inflation data released overnight.
U.S. President Joe Biden held a telephonic conversation with
Chinese President Xi Jinping on Wednesday night and they exchanged
views on the bilateral relationship and major international and
Xi warned that confrontation would be "a disaster" and called to
re-establish the means to avoid misjudgments.
Data from Destatis showed that German wholesale prices remained
stable in January.
The wholesale price index remained unchanged year-on-year in
January, after a 1.2 percent decrease in December.
The euro reversed from its early lows of 1.2114 against the
greenback and 126.69 against the yen, gaining to 1.2136 and 127.07,
respectively. If the euro rises further, 1.24 and 129.00 are likely
seen as its next resistance levels against the greenback and the
The euro edged higher to 0.8776 against the pound and 1.0800
against the franc, after falling to 0.8753 and a 10-day low of
1.0784, respectively in prior deals. The euro may challenge
resistance around 0.90 against the pound and 1.10 against the
In contrast, the European currency was down against the loonie,
at a 2-day low of 1.5369. Next key support for the euro is seen
around the 1.50 level.
The single currency was steady against the kiwi, after reaching
as low as 1.6767 in late Asian trading. The pair finished
yesterday's deals at 1.6788.
After having fallen to a 2-day low of 1.5644 at 3:00 am ET, the
euro held steady against the aussie. This followed a 3-day high of
1.5708 set at 7:30 pm ET. At yesterday's close, the pair was worth
Looking ahead, the U.S. weekly jobless claims for the week ended
February 6 will be featured in the New York session.