RTTN:Euro Climbs As German Business Confidence Strengthens
The euro strengthened against other major currencies in the European morning session on Friday after a report showed that German business confidence improved in May, as businesses in the Europe's largest economy appears more satisfied with the current environment.
Germany's business sentiment improved to 105.7 in May, after two consecutive decline in previous months. The reading was forecast to remain unchanged at April reading of 104.4.
The assessment of current conditions rose to 110, from 107.3 a month ago. The reading was above the expected level of 107.2.
The expectations index held steady at 101.6 in May and matched economists' expectations.
The euro is now trading at 131.74 against the yen, reversing from an early low of 130.69. At Thursday's close, the pair was worth 131.88.
Stability is "extremely desirable" in the case of Japanese bond market, Bank of Japan Governor Haruhiko Kuroda said during a speech at an International Conference on the 'Future of Asia'
Commenting on the recent spike in Japanese government bond yield, he said the central bank will stem volatility through flexible market operations. He also vowed to strengthen communication with the markets.
The euro hit a 2-day high of 1.2957 against the U.S. dollar, adding 0.42 percent from an early low of 1.2903. If the euro extends uptrend, it may break resistance around 1.305 level. The pair finished yesterday's deals at 1.2932.
The euro is worth 1.2536 against the franc, up from an Asian session's low of 1.2484. On the upside, the euro may eye resistance around 1.265 level. The euro-franc pair ended deals at 1.2528 on Thursday.
The euro area currency neared the key 0.86 area against the pound, approaching 0.8591, its highest level since April 17. This is up 0.37 percent from Thursday's close of 0.8559. The euro is poised to break next upside target level around 0.865.
Mortgage approvals in the UK increased less than expected in April, the latest figures from the British Bankers' Association (BBA) showed today.
The number of loans approved for house purchase rose to 32,153 in April from 31,401 in March. Economists expected it to rise to 32,800.
The euro advanced to 1.6052 against the NZ dollar, a level not seen since February 13. This may be compared to yesterday's close of 1.5896. The euro may pierce 1.62 level, if it rises further.
The European single currency that closed yesterday's deals at 1.3323 against the loonie spiked up to more than a 4-week high of 1.3428. The euro-loonie pair may eye resistance around 1.35 area.
The euro appreciated to a 1-1/2-year high of 1.3422 against the Australian dollar from Thursday's close of 1.3266. The next upside target level for the euro-aussie pair is seen around 1.358.
The U.S. durable goods orders data for April is due in the North American session.
