The euro extended its early rally against the other major currencies in European deals on Thursday, as reports showed that Eurozone economic sentiment beat estimates in October and German unemployment declined, reviving hopes that the region is on course for recovery.
Survey data from European Commission showed that Eurozone economic confidence improved unexpectedly in October.
The economic sentiment rose to 105.9 in October from 105.6 in the previous month. Economists had expected the index to fall to 105.1.
Meanwhile, German unemployment decreased more-than-expected in October, according to a report from the Federal Labor Agency.
The number of unemployed decreased by 5,000 from September, exceeding expectations for a decline of 2,000.
Meanwhile, the jobless rate remained unchanged at 6.4 percent in October, in line with expectations.
However, caution prevailed after the Federal Reserve left the door open for a rate hike in December, citing “solid rates” of growth in consumer spending and business investment
Investors look ahead to revised U.S. economic growth data and the weekly report on jobless claims for clues to whether the world’s largest economy is ready to cope with interest rate rises.
In the Asian trading today, the euro fell against its major rivals.
In European deals, the euro rose to 132.73 against the yen and 0.7192 against the pound, from an early near 6-month low of 131.58 and more than a 2-month low of 0.7144, respectively. If the euro extends its uptrend, it is likely to find resistance around 136.00 against the yen and 0.74 against the pound.
The euro advanced to 1.0977 against the greenback and 1.4506 against the loonie, coming off from its prior lows of 1.0902 and 1.4385, respectively. Continuation of the euro’s uptrend may take it to resistance levels of around 1.11 against the greenback and 1.46 against the loonie.
The 19-nation currency reached as high as 1.5482 against the aussie, from an early low of 1.5339, and held steady thereafter. The euro may possibly find resistance around the 1.56 region.
On the flip side, the euro trended lower against the franc and the NZ dollar, trading at 1.0837 and 1.6346, respectively. This may be compared to previous highs of euro to 1.0874 against the franc and 1.6442 against the kiwi. The next possible support for the euro is seen around 1.06 against the franc and 1.61 against the kiwi.
Looking ahead, U.S. weekly jobless claims for the week ended October 24, the first estimate third quarter U.S. GDP data, pending home sales data for September, Canada industrial product and raw materials price indexes for September and preliminary German CPI data for October are slated for release in the New York session.
At 9:10 am ET, Federal Reserve Bank of Atlanta President Dennis Lockhart will deliver opening remarks at the Workforce Development Panel Discussion, in Washington DC.
The material has been provided by InstaForex Company – www.instaforex.com