(RTTNews) - In early European deals on Tuesday, the euro edged up against its most major counterparts as European stocks opened higher after rating agencies reaffirmed the U.S. government's credit grades.
Standard & Poor's, Moody's Investors Service and Fitch Ratings yesterday maintained their U.S. credit ratings even after the congressional super-committee's failure to reach a deal on deficit reduction.
A U.S. congressional committee failed on Monday to agree a deal to cut the federal deficit, with Republicans and Democrats blaming each other. President Barack Obama expressed disappointment with the outcome, laying the blame for the committee's failure squarely at the feet of the Republicans - who are unwilling to budge on tax hikes for the wealthiest Americans.
U.K.'s FTSE 100 opened 0.4 percent higher, Germany's DAX index was up 0.8 percent at 5651 and France's CAC-40 index opened 1.1 percent higher at 2926.13.
The euro rose to a 4-day high of 1.3556 against the dollar and a 6-day high of 104.37 against the yen, compared to yesterday's close of 1.3488 and 103.72, respectively. If the euro gains further, it may likely target 105.0 against the yen and 1.360 against the dollar.
Against the pound, the euro climbed to 0.8642. On the upside, 0.866 is seen as the next target level for the euro. At yesterday's close, the euro-pound pair was quoted at 0.8626.
The euro that closed yesterday's trading at 1.4019 against the Canadian dollar strengthened to 1.4052. The next upside target level for the euro-loonie pair is seen at 1.406 in near term.
Looking ahead, U.K. public sector finance data for October is due at 4:30 am ET.
Across the Atlantic, Canada's retail sales for September and the U.S. preliminary estimate of third quarter GDP are slated for release in the New York morning session.
At 2 pm ET, the Federal Reserve is scheduled to release the minutes of its November 1- 2 Federal Open Market Committee meeting.
