Euro Spikes Up Amid ECB Lagarde's Testimony
December 02 2019 - 4:15AM
RTTF2
The euro appreciated against its most major counterparts in
early New York deals on Monday, after European Central Bank
President Christine Lagarde said that the central remained resolute
in its commitment to deliver on its price stability mandate.
Speaking before the European Parliament's economic affairs
committee, Lagarde said that the Governing Council's decisions in
September showed that it was alert to the potential side effects of
monetary policy.
The review of the ECB's monetary policy strategy will start in
the near future, the ECB chief told.
The strategy review will be guided by two principles - thorough
analysis and an open mind.
Neverthless, Eurozone growth remained weak mainly due to the
impact of global factors and there are signs of that the slowdown
in manufacturing is spreading to other sectors, Lagarde added.
Inflation remained subdued and price growth expectations are at
or close to historical lows, she said.
Final data from IHS Markit showed that the euro area
manufacturing sector continued to contract in November but the pace
of declined slowed from October.
The factory Purchasing Managers' Index improved to 46.9 in
November from 45.9 in October and above the flash 46.6.
Separate data showed that German PMI rose to a five-month high
of 44.1 in November from 42.1 in October. This was above the
preliminary estimate of 43.8.
The euro appreciated to a 10-day high of 1.1045 against the
greenback from last week's closing value of 1.1015. The euro may
find resistance around the 1.13 level.
The euro spiked up to 121.02 against the yen, its biggest since
November 7. If the euro rises further, 123.00 is likely seen as its
next resistance level.
The single currency approached a session's high of 0.8543
against the pound, after falling as low as 0.8514 at 7:00 am ET.
Next key resistance for the euro is seen around the 0.87 level.
The 19-nation currency that closed Friday's trading at 1.4627
against the loonie strengthened to a 10-day high of 1.4689. The
euro is seen finding resistance around the 1.49 level.
In contrast, the euro remained steady against the franc, after
touching a 5-day low of 1.0983 at 6:45 am ET. This may be compared
to nearly a 4-week high of 1.1028 hit at 7:45 pm ET. At Friday's
close, the pair was worth 1.1017.
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