Tuesday during early deals, the euro showed mixed trading against its major counterparts following several lackluster economic reports released from Europe. The euro advanced to a 4-day high against the dollar, while recovered from a 4-day low against the franc. On the other hand, the euro eased from a new multi-week high against the pound and a 5-day high against the yen.
Germany's consumer price index, or CPI, rose 1% year-on-year in February following an increase of 0.9% in January. The CPI growth picked up for the first time in seven months. Compared with January, the CPI was up 0.6% in February.
Germany's foreign trade surplus widened to EUR 8.5 billion in January from a revised EUR 7.3 billion in December. Economists were looking for a surplus of EUR 9.5 billion. Initially, the December surplus was reported as EUR 6.9 billion.
French trade deficit swelled to EUR 4.55 billion in January from a revised EUR 2.95 billion in December. Economists had forecast a deficit of EUR 3 billion. Initially, the December trade deficit was reported as EUR 2.45 billion.
French manufacturing production declined 4.1% in January from the previous month, following a revised 2.1% drop in December. Economists had expected a monthly decrease of 1.3%
Italy's producer price index, or PPI, fell 2% year-on-year in January. Economists had forecast a relatively slower decline of 0.4% for January. On a monthly basis, total producer prices dropped 0.8%, while the consensus forecast was for a fall of 0.5%.
The euro climbed to a 4-day high of 1.2742 against the dollar in early deals on Tuesday. The next upside target level for the euro is seen at 1.29. The euro-dollar pair was worth 1.2613 at yesterday's close.
The euro, which closed yesterday's trading at 0.9157 against the pound rose to a new multi-week high of 0.9221 by about 2:30 am ET Tuesday. Thereafter, the euro lost ground and the pair is currently worth 0.9167 with 0.914 seen as the next target level.
The UK RICS house price balance, BRC retail sales monitor and the industrial production reports, which were released today likely influenced the pound.
The manufacturing production in the UK dropped 2.9% on a monthly basis in January compared to a revised 1.9% decline in December. Economists had expected a monthly 1.4% fall. The ONS said industrial output slid 2.6% month-on-month, taking the annual decline 11.4% in January. Economists were looking for a monthly decrease of 1.2% and an annual 9.9% fall.
