Euro Higher As European Shares Advance
The euro appreciated against its major counterparts in the
European session on Tuesday, as investors awaited the Fed meeting
beginning today for clues about the future outlook for the
The meeting will conclude on Wednesday at 2 pm ET.
The Fed is widely expected to leave interest rates unchanged,
but traders will be paying close attention to any changes in the
Investors will closely watch the Fed's reaction to the recent
spike in bond yields, which has led to considerable volatility in
Wall Street in recent sessions.
European stocks rose, tracking a rally in Asia and on Wall
Street, amid optimism over the global economic recovery.
Survey data from the ZEW - Leibniz Centre for European Economic
Research showed that German economic confidence improved in
The ZEW Indicator of Economic Sentiment rose 5.4 points to 76.6
points in March. The reading was above economists' forecast of
The euro edged higher to 1.1946 against the greenback and 130.40
against the yen, off its early lows of 1.1914 and 130.08,
respectively. The euro is seen finding resistance around 1.22
against the greenback and 132.00 against the yen.
The euro that closed yesterday's deals at 0.8575 against the
pound climbed to near a 2-week high of 0.8640. Against the aussie,
the euro hit a 6-day high of 1.5473, up from Asian session's 4-day
low of 1.5371. The next possible resistance for the euro is seen
around 0.88 against the pound and 1.56 against the aussie.
The European currency gained to 1.6646 against the kiwi, after
falling to 1.6551 at 5 pm ET. Versus the loonie, the euro remained
higher at 1.4896. If the euro rises further, it may find resistance
around 1.70 against the kiwi and 1.51 against the loonie.
In contrast, the euro weakened to a 6-day low of 1.1041 against
the franc, following a high of 1.1076 seen at 5:30 am ET. Next key
support for the euro is likely seen around the 1.07 level.
Looking ahead, U.S. import and export prices, retail sales and
industrial production, all for February, business inventories data
for January and NAHB housing market index for March are scheduled
for release in the New York session.