Euro Strengthens To Fresh 2-month High Against Dollar
In early European deals on Thursday, the euro rose to a fresh 2-month high against the U.S. dollar. Meanwhile, the euro recovered slightly from a 2-day low against the yen and the franc.
Asian stocks declined today on renewed worries after the Federal Reserve yesterday cut its growth forecast, U.S. retail sales declined and China’s economic growth eased.
In Asia, Japan’s Nikkei 225 index fell 1.1%, Hong Kong’s Hang Seng slipped 1.5%, China’s Shangai composite index dropped 1.9%, New Zealand’s NZX 50 index lost 0.8%, South Korea’s Kospi declined 0.4%, Taiwan’s main index plunged 0.1%, Australia’s S&P 200 index fell 0.4% and the All Ordinaries index was 0.5% lower.
Following weak Asian equities, the European stocks too opened lower today. However, some stocks recouped their initial losses shortly, while some other stocks remained lower.
Around 5:40 am ET, Germany’s DAX and France’s CAC 40 were trading flat, while U.K.’s FTSE 10 index lost 0.4
The eurozone economy is likely to grow at a “moderate and uneven” pace while inflationary pressures in the 16-nation bloc remain contained, the European Central Bank said today.
In its latest monthly bulletin, the ECB said the risks to the euro area’s economic outlook are “broadly balanced, in an environment of high uncertainty.” On the upside, it said the global economy and foreign trade may recover stronger than expected, while on the downside, tension in the financial markets could increase further, dampening confidence.%.
The euro that plunged to 0.8328 against the pound at 3:50 am ET Thursday recouped its losses thereafter. As of now, the euro-pound pair is worth 0.8354. If the euro gains further, it may likely target the 0.839 level.
The euro, which slipped to a 2-day low of 111.85 against the yen at 3:50 am ET Thursday recovered thereafter. Currently, the euro-yen pair is worth 112.70 with 113.3 seen as the next upside target level.
The euro fell to a 2-day low of 1.3381 against the Swiss franc before reversing direction at 3:50 am ET Thursday. At present, the euro is worth 1.3415 against the franc. The next upside target level for the European currency is seen at 1.347.
At 5:10 am ET, the euro soared to a new 2-month high of 1.2804 against the U.S. dollar. If the euro advances further, it may likely target the 1.310 level. The euro-dollar pair that closed yesterday’s trading at 1.2743 is now worth 1.2795.
Investors are now likely to focus on the New York session, in which the U.S. PPI for June, weekly jobless claims data for the week ended July 10, industrial production for June, results of the New York Federal Reserve’s empire state manufacturing survey and the results of the Philadelphia Federal Reserve’s manufacturing survey for July are slated for release.
