The euro was higher against its major counterparts in European deals on Tuesday, after data showed that the German unemployment declined more than expected in January.
Data from the Federal Labor Agency reportedly showed that the number of people out of work decreased 20,000, much bigger than an expected decrease of 8,000.
The jobless rate fell to a record 6.2 percent from 6.3 percent in December. It was forecast to remain unchanged at 6.3 percent in January.
Investors await Eurozone PPI and unemployment data, due shortly, for further clues about the region’s recovery.
The “downside risks” facing Europe’s economy have increased due to the recent turmoil in emerging markets, ECB President Mario Draghi said Monday, underlining the bank’s readiness to provide additional stimulus in March.
The currency showed mixed performance in Asian deals. While it gained against the greenback and the pound, it was weaker against the yen. Against the franc, it held steady.
In European trading now, the 19-nation currency firmed to a 4-day high of 1.0920 against the greenback, compared to 1.0887 hit late New York Monday. The euro may challenge resistance around the 1.10 zone.
The euro appreciated to 1.1130 against the franc, its strongest since January 29, when it hit over a 1-year high. The euro is seen finding resistance around the 1.14 region.
Data from the Federal Statistical Office showed that Swiss retail sales declined for the fifth consecutive month in December.
Retail sales decreased 1.6 percent annually after decreasing 1.7 percent in November and a 0.9 percent fall in October.
Reversing from its previous session’s decline of 0.7540 against the pound, the single currency advanced to 0.7608. If the euro-pound pair extends rise, it may find resistance around the 0.77 level.
The euro, having fallen to 131.31 against the yen at 12:55 am ET, reversed direction with the pair trading at 131.75. Continuation of the euro’s uptrend may take it to a resistance surrounding the 133.00 mark.
Data from the Bank of Japan showed that Japan’s monetary base surged 28.9 percent on year in January, coming in at 355.103 trillion yen.
Banknotes in circulation added 6.2 percent, while coins in circulation gained 0.7 percent.
The euro bounced off to 1.5331 against the loonie and 1.6829 against the kiwi, off its early lows of 1.5173 and 1.6609,respectively. On the upside, 1.55 and 1.70 are possibly seen as the next resistance levels for the euro against the loonie and the kiwi, respectively.
Extending previous session’s rally, the euro strengthened to a 5-day high of 1.5486 versus the Australian dollar. The next possible resistance for the euro-aussie pair is likely seen around the 1.56 area. The pair was worth 1.5300 when it ended yesterday’s trading.
Australia’s central bank maintained its record low interest rate for the eighth straight meeting on Tuesday as widely expected by economists.
The policy board of the Reserve Bank of Australia left its cash rate unchanged at 2.00 percent.
Looking ahead, at 5:00 am ET, Swiss National Bank President Thomas Jordan is scheduled to speak on the perspectives for the Swiss economy and monetary policy in Geneva.
Subsequently, New Zealand GlobalDairyTrade dairy auction is due to be held at 7:00 am ET.
At 1:00 pm ET, Federal Reserve Bank of Kansas City President Esther George is expected to speak about the US economic outlook and monetary policy at the Central Exchange in Kansas City.
The material has been provided by InstaForex Company – www.instaforex.com