The euro spiked up to a multi-day high against the pound in European deals on Monday, after the European Central Bank President Mario Draghi said that the bloc would attain the price stability target “without undue delay.”
Speaking in Bologna, Draghi told he expects the inflation to return to its objective of 2 percent in due course, after the recalibration of monetary policy tools decided by the Governing Council earlier this month.
The ECB chief also said that the ECB is willing to intensify the use of its instruments to ensure that it achieves its price stability mandate, if circumstances warrant.
Data from Eurostat showed that Eurozone industrial production rebounded at a faster than expected pace in October.
Industrial output advanced 0.6 percent on a monthly basis in October, reversing a 0.3 percent fall in September. This was the first increase in three months and exceeded a 0.3 percent rise forecast by economists.
Investors look ahead to the Federal Reserve’s interest rate decision due later in the week. The FOMC is widely expected to increase interest rates from the near-zero policy which was in force since December 2008.
The euro showed mixed trading against its major rivals in Asian trading. While the euro held steady against the franc, pound and the yen, it declined against the greenback.
In European deals, the euro appreciated by 0.82 percent to a 5-day high of 0.7266 against the pound, following a decline to 0.7207 at 2:15 am ET. Continuation of the euro’s uptrend may lead it to a resistance around the 0.74 region.
Rebounding from an early low of 1.0946 against the greenback, the euro edged up to 1.0987. If the euro-greenback pair extends rise, 1.11 is possibly seen as its next resistance level.
The single currency spiked up to 1.5144 against the Canadian dollar, its highest level since September 29, off its prior low of 1.5005. The euro is seen finding resistance around the 1.53 area.
The euro recovered to 1.6315 against the kiwi and 1.5272 against the aussie, reversing from its early lows of 1.6239 and 1.5157, respectively. On the upside, the euro may locate resistance around 1.655 against the kiwi and 1.54 against the aussie.
The euro held steady held steady against the yen, trading near its early 11-day low of 132.49. The pair was worth 132.94 when it ended Friday’s trading.
Final data from the Ministry of Economy, Trade and Industry showed that Japan’s industrial production climbed for the second straight month in October as initially estimated.
Industrial production rose a seasonally adjusted 1.4 percent month-over-month in October, confirming the flash data, after a 1.1 percent gain in September.
Meanwhile, the 19-nation currency trended lower against the franc, trading at near 4-week low of 1.0780. At last week’s close, the pair was valued at 1.0801. The next possible support for the euro is seen around the 1.06 area.
Looking ahead, at 10:00 am ET, Bank of Portugal Governor and ECB Governing Council Member Carlos Costa and economist Paul Krugman are expected to speak at a conference in honor of Portuguese economist Jose da Silva Lopes in Lisbon.
The material has been provided by InstaForex Company – www.instaforex.com