(RTTNews) - In early European deals on Thursday, the euro climbed, barring Swiss franc, as stocks gained on growing optimism that the Federal Reserve Chairman Bernanke will announce some measures to support the U.S. economy.
The euro jumped to a 15-day high against the pound and a 17-day high against the yen.
Germany's DAX is now up by 0.8 percent, France's CAC 40 index is adding 1.3 percent and U.K.'s FTSE 100 index is gaining by 0.4 percent.
In an attempt to meet its deficit targets amid persisting debt troubles in the euro area, the French Government led by President Nicholas Sarkozy unveiled a package of austerity measures on Wednesday, including reduction on government spending, and tax increases. Consequently, the government has also lowered its GDP growth rates for 2011 and 2012.
Disappointing German consumer sentiment data released at 2 am ET today failed to influence the European currency as traders focus remained on the Jackson hole symposium due on Friday.
The survey results from the market research group GfK showed that the forward-looking consumer sentiment index fell to 5.2 in September from a revised reading of 5.3 in August. Economists expected the index to fall to 5.1 from August's original score of 5.4.
Economic expectations fell for the second consecutive time with the indicator dropping 31.2 points in August. The current indicator value of 13.4 points is the lowest that has been recorded since June 2010.
The euro is worth 1.4270 against the Canadian dollar, up from yesterday's close of 1.4235. The near term resistance for the euro-loonie pair is seen at 1.429.
Against the Australian dollar, the euro is trading at a 2-day high of 1.3820, compared to yesterday's close of 1.3775. On the upside, 1.387 is seen as the next target level for the European currency.
After hitting a low of 1.7351 against the New Zealand dollar at 12:10 am ET, the euro gained. As of now, the euro-kiwi pair is worth 1.743 and the next upside target level for the euro is seen at 1.745. At yesterday's close, the pair was quoted at 1.7399.
Statistics NZ reported early in the day that the retail sales volume in New Zealand increased 0.9 percent in the June 2011 quarter.
The agency also said the seasonally adjusted total value of Q2 retail sales was up 2.1 percent on quarter.
The euro that closed yesterday's trading at 1.4415 against the US dollar is presently worth 1.4470. If the euro-dollar pair advances further, it will break resistance of 1.448 and target the 1.450 level.
Against the Japanese yen, the euro is trading at a 17-day high of 111.64 with 113.0 seen as the next upside target level. The euro-yen pair was quoted at 110.98 at yesterday's close.
The euro is trading at a 15-day high of 0.8834 against the pound and the next upside target level for the euro is seen at 0.888. The pair ended yesterday's trading at 0.8805.
The euro that strengthened to a 1-week high of 1.1499 against the Swiss franc at 3:10 am ET fell thereafter. The pair is presently worth 1.1460, compared to yesterday's close of 1.1477. The next downside target level for the euro is seen at 1.138.
Looking ahead, Switzerland's economic expectations survey results from the Center for European Economic Research (ZEW) and Credit Suisse and the distributive trades survey from the Confederation of British Industry are expected in the upcoming hours.
From the U.S., weekly jobless claims report for the week ended August 20 is due in the New York morning session.
