Euro Climbs On Risk Appetite, ECB Rate Hike Expectations
April 20 2022 - 3:34AM
RTTF2
The euro appreciated against its most major counterparts in the
European session on Wednesday amid risk appetite, as corporate
earnings exceeded expectations, while a retreat in treasury yields
helped ease concerns over inflation.
European Central Bank Governing Council member Martins Kazaks
said that a rate hike is possible as early as July.
Oil prices rebounded after a data from the American Petroleum
Institute showed that U.S. crude inventories dropped unexpectedly
last week.
Investors focus on a televised debate between President Emmanuel
Macron and his far-right rival Marine Le Pen that could be decisive
before a runoff vote on Sunday.
Opinion polls suggest that the race will be much tighter than
the contest in 2017, when Macron defeated Le Pen by 66-34 percent
of the vote.
The euro jumped to 1.0301 against the franc, its strongest level
since March 31. On the upside, 1.05 is possibly seen as its next
resistance level.
The euro rose to a 1-week high of 0.8335 against the pound and a
6-day high of 1.0867 against the greenback, off its previous lows
of 0.8283 and 1.0783, respectively. The euro is likely to find
resistance around 0.86 against the pound and 1.10 against the
greenback.
In contrast, the euro remained lower against the aussie and the
kiwi, touching a 6-day low of 1.4556 and a 2-day low of 1.5946,
respectively. If the euro falls further, 1.44 and 1.56 are likely
seen as its next support levels against the aussie and the kiwi,
respectively.
The euro retreated to 1.3571 against the loonie and 138.43
against the yen, down from a prior high of 1.3636 and nearly a
7-year high of 139.68, respectively. The next possible support for
the euro is seen around 1.33 against the loonie and 133.00 against
the yen.
Looking ahead, U.S. existing home sales, Canada CPI and new
housing price index, all for March, are scheduled for release in
the New York session.
The Fed Beige book report will be released at 2 pm ET.
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