The euro strengthened against the other major currencies in the European session on Monday as European share rose, amid speculation the ultra-loose monetary policies followed by the world’s top central banks wouldn’t change anytime soon.
The U.K.’s FTSE 100 index is currently up 2.02 percent or 123.68 points at 6,253, France’s CAC 40 index is down 2.96 percent or 131.97 points at 4,590 and Germany’s DAX is down 2.23 percent or 212.72 points at 9,765.
In other economic news, data from Eurostat showed that Eurozone retail sales remained flat in August after recovering in the prior month. Economists had forecast sales to fall 0.1 percent after rising 0.6 percent in July. The rate for July was revised up from the initial estimate of 0.4 percent.
On a yearly basis, retail sales growth slowed to 2.3 percent in August from revised 3 percent in July. Nonetheless, it was better than the expected increase of 1.7 percent.
Data from the think tank Sentix showed that Eurozone investor confidence weakened more-than-expected to an eight-month low in October. The investor sentiment index fell to 11.7 in October from 13.6 in September. This was the weakest reading since February 2015.
Data from Markit showed that Eurozone private sector growth slowed more than initially estimated to a four-month low in September. The services Purchasing Managers’ Index came in at a 7-month low of 53.7 in September, below the earlier flash estimate of 54 and August’s 54.4.
In the Asian session today, the euro held steady against its major rivals.
In the European trading, the euro rose to a 2-week high of 135.59 against the yen and a 5-day high of 1.0944 against the Swiss franc, from early lows of 134.40 and 1.0886, respectively. If the euro extends its uptrend, it is likely to find resistance around 137.00 against the yen and 1.10 against the franc.
The euro edged up to 1.1281 against the U.S. dollar, from an early low of 1.1206. The euro is likely to find resistance around the 1.15 region.
The euro was supported by falling U.S. dollar, as the latter remained under selling pressure amid doubts over whether or not the Federal Reserve will be able to follow through with plans to hike interest rates before the end of the year.
Against the pound, the euro advanced to 0.7423 from early an low of 0.7376. On the upside, 0.75 is seen as the next resistance level for the euro.
Meanwhile, the euro fell to a 7-week low of 1.7267 against the NZ dollar, from an early low of 1.7420. The euro may test support near the 1.70 area.
Against the Australian and the Canadian dollars, the euro edged down to 1.5863 and 1.4736 from early highs of 1.5934 and 1.4786, respectively. The euro is likely to find support near 1.54 against the aussie and 1.45 against the loonie.
Looking ahead, U.S. service sector PMI report and labor market conditions index, both for September, are slated for release in the New York session.
Most Australian banks will be closed in observance of Labor Day holiday. Also, the Chinese markets will be closed in observance of National Day holiday.
At 9:00 am ET, euro group finance ministers will hold a meeting in Brussels.
The material has been provided by InstaForex Company – www.instaforex.com