RTTN:Euro Advances Ahead Of European Union Budget Talks
The euro firmed against most major currencies on Thursday as investors await European Union budget summit scheduled to be commenced today.
The talks will be resumed on Brussels for the EU's seven-year budget of about 1 trillion euros. There remain differences among bloc members over the size of budget as well as spending and subsidy cuts set for 2014-2020. While U.K. wants a complete freeze in spending, France opposes cuts in agriculture.
The two-day meeting will be headed by European Council President, Herman Van Rompuy.
The euro was also supported by positive PMI reports from Germany and France.
In France, the seasonally adjusted purchasing managers' index for the manufacturing sector increased to 44.7 in November from 43.7 in October, hitting the highest level in three month.
Germany's flash PMI rose to 46.8 in November from 46 in October. Economists expected the reading to remain unchanged at the October level.
The euro that closed Wednesday's deals at 0.8044 against the pound approached 0.8069, its highest level since October 31. If the euro rises further, it may break 0.81 level.
Against the U.S. dollar, the euro advanced to a fresh 2-week high of 1.2870 with 1.29 seen as the next resistance level. The euro-greenback pair ended yesterday's deals at 1.2830.
The euro resumed gains against the yen, hitting near a 7-month high of 106.60. If the euro gains further, it may break 107.00 level. The pair ended yesterday's deals at 105.90.
The euro is trading at 1.2836 against the loonie, its strongest level since November 2. On the upside, the euro may break 1.29 level. At Wednesday's close, the pair traded at 1.2786.
The euro added 0.5 percent against the NZ dollar, hitting fresh 3-week high of 1.5822. This may be compared to yesterday's close of 1.5751. The euro is likely to seek next resistance level at 1.59.
Visitor arrivals in New Zealand decreased notably from last year in October, data released by Statistics New Zealand showed today.
The number of tourists visiting New Zealand decreased 15 percent on an annual basis in October to around 184,200. There was a marked growth in arrivals in October last year owing to the Rugby World Cup.
Against the aussie, the euro approached near a 3-week high of 1.2432, up 0.4 percent from yesterday's closing value of 1.2377. If the euro extends rise, it may break 1.25 level.
Canada retail sales data for September is due out at 8:30 am ET.
The U.S. markets will be closed for the Thanks Giving day.
