Euro Extends Rally Amid Risk Appetite
March 09 2017 - 11:22PM
RTTF2
The euro extended its early rally against its major counterparts
in the early European trading on Friday amid risk appetite, as oil
prices stabilized and investors await the all-important U.S.
non-farm payrolls report due later in the day for clues about the
timing of further rate increases.
After a blockbuster private-sector jobs report earlier this
week, the official report from the Labor Department is expected to
show that employment increased by about 195,000 jobs in February,
down compared to January's 227,000. The unemployment rate is
expected to dip to 4.7 percent from 4.8 percent.
Crude prices inched up, even as record U.S. crude inventories
dampened optimism over the OPEC-led supply cuts.
The currency's gains were also driven by comments from the ECB
President Draghi, who indicated little urgency to loosen the policy
further in the wake of improved economic outlook in the currency
bloc. His comments were viewed as a shift in the bank's stance,
signaling no further rate cuts or long-term loan programs for
now.
Figures from Destatis showed that Germany's exports recovered
and import growth accelerated in January.
Exports advanced by more-than-expected 2.7 percent
month-on-month in January, in contrast to a 2.8 percent fall in
December. At the same time, imports grew at a faster pace of 3
percent after edging up 0.1 percent.
The currency has been trading in a positive territory in the
Asian session.
The euro that closed yesterday's trading at 1.0706 against the
franc and 1.4288 against the loonie advanced to 1.0745 and a
session's high of 1.4335, respectively. On the upside, the euro is
likely to find resistance around 1.09 against the franc and 1.46
against the loonie.
The euro spiked up to a 4-day high of 1.0618 against the
greenback, 1-1/2-month high of 122.56 against the yen and near a
2-month high of 0.8731 against the pound, from yesterday's closing
values of 1.0576, 121.56 and 0.8696, respectively. The next
possible resistance for the euro may be located around 1.09 against
the greenback, 125.00 against the yen and 0.89 against the
pound.
The single currency firmed to a 4-month high of 1.5378 against
the kiwi and a 5-week high of 1.4123 against the aussie, compared
to Thursday's closing values of 1.5334 and 1.4092, respectively. If
the euro rises further, it may find resistance around 1.44 against
the aussie, 1.46 against the loonie and 1.55 against the kiwi.
Looking ahead, Canada and U.S. jobs data for February and U.S.
Baker Hughes rig count data are set to be announced in the New York
session.
At 2:00 pm ET, U.S. Federal Reserve monthly budget balance
statement is set to be published.
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