Euro Extends Rise As Eurozone Core Inflation Picks Up
July 31 2015 - 6:20AM
RTTF2
The euro extended its early advance against the other major
currencies in European deals on Friday, as core consumer prices in
the euro area accelerated in July and unemployment rate remained
unchanged in June at the lowest level seen since early 2012,
igniting hopes that the region's recovery is continuing.
Flash data from Eurostat showed core inflation in the euro area
that excludes energy, food, alcohol and tobacco, accelerated to 1
percent from 0.8 percent in June. It was expected to remain at 0.8
percent.
Inflation remained stable at 0.2 percent in July. It stayed in
positive territory for the third straight month and July's rate
matched economists' expectations.
Separate data showed that Eurozone jobless rate held steady at
11.1 percent in June, unchanged from May. This was the lowest rate
recorded in the euro area since March 2012. The rate was forecast
to drop to 11 percent.
The number of unemployed increased by 31,000 from May. Compared
with June 2014, unemployment fell 811,000.
Meanwhile, European stocks are trading mixed, amid corporate
earnings reports and disappointing data on German retail sales.
The euro showed mixed performance in the Asian session. While
the euro held steady against the pound and the yen, it fell against
the franc. Against the greenback, the euro advanced.
In European deals, the single currency appreciated to a
session's high of 1.0988 versus the greenback, up by 0.5 percent
from Thursday's closing value of 1.0929. Continuation of the euro's
uptrend may take it to a resistance surrounding the 1.11 mark.
The 19-nation currency climbed to a 2-day high of 0.7055 against
the pound, off its previous low of 0.7002. If the euro-pound
extends rise, it may challenge resistance near the 0.71 level. The
pair was valued at 0.7005 when it ended yesterday's trading.
The euro trended higher against the yen, touching a session's
high of 136.48. On the upside, 137.5 is seen as the next possible
resistance for the euro. At Friday's close, the pair was worth
135.69.
The single currency bounced off to 1.0574 against the Swiss
franc, from an early weekly low of 1.0530. The euro-franc pair
finished yesterday's trading at 1.0595. The euro-franc pair is seen
finding resistance around the 1.07 region.
Extending early rally, the euro firmed to a 2-day high of 1.4334
against the loonie, 3-day highs of 1.5150 against the aussie and
1.6781 against the kiwi, compared to yesterday's closing values of
1.4200, 1.4988 and 1.6547, respectively. On the upside, the euro
may find resistance around 1.45 against the loonie, 1.53 against
the aussie and 1.70 against the kiwi.
Looking ahead, Canada GDP for May, U.S. Chicago PMI for July and
University of Michigan's final U.S. consumer sentiment index for
July are due in the New York session.
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Mar 2024 to Apr 2024
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Apr 2023 to Apr 2024