RTTN:Euro Mixed After Eurozone Business Confidence Data
The euro showed mixed trading in early deals on Thursday after a report showed that the eurozone economic confidence in June improved more than expected.
Survey data from European Commission showed that the economic sentiment index rose to 91.3 in June from 89.5 a month ago. The reading exceeded the consensus forecast of 90.4.
Earlier in the day, finance ministers of the European Union reached an agreement on how to deal with failing banks and who should bear the cost of such an event without burdening the taxpayers.
As per the new bank resolution rules agreed at a meeting of Economic and Financial Affairs Council early today, shareholders, unsecured creditors and depositors having more than EUR 100,000, with an order of seniority, will have to share the cost of bank bail-ins.
A leading indicator of the euro area economy increased for the second straight month in May, adding to hopes that the economy is gaining strength, data from a survey by the Conference Board showed today.
The leading economic index recorded a 0.4 percent month-on-month gain in May to reach 107.3, following a 0.1 percent rise in April. The index increased for the fourth time in five months.
Germany's import prices declined for a fifth consecutive month in May to 2.9 percent year-on-year in May, following 3.2 percent decline in April. Economists had forecast a 2.6 percent fall. On a monthly basis, prices fell 0.4 percent in May after a 1.4 percent drop in April.
Federal Statistics Office data revealed Germany's unemployment rate decreased a seasonally adjusted 5.3 percent in May from 5.4 percent in April. The Labor Ministry report showed the seasonally adjusted jobless rate stayed unchanged at 6.8 percent.
The euro was trading higher in the Asian session on renewed risk-appetite in the market as slower-than-estimated growth in the U.S. economy stoke speculation the Federal Reserve will not reduce its bond purchases in a hurry.
Elsewhere, the U.K. economy escaped recession in the first quarter as previously estimated, with the gross domestic product expanding 0.3 percent, reversing last quarter's 0.2 percent contraction.
Overall activity in the Japanese industrial sector increased at a faster pace of 0.4 percent sequentially in April, matching economists' expectations and more than 0.2 percent recorded in March.
The euro climbed to a weekly high of 1.2318 against the Swiss franc around 6:40 am ET, appreciating 0.8 percent from Monday's 8-week low of 1.2218. The next bullish barrier for the pair is seen around the 1.2350 area.
The common currency climbed to a 3-day high of 0.8537 against the pound following the release of the UK GDP data, up 0.8 percent from yesterday's 2-week low of 0.8468. Immediate resistance for the euro-pound pair is seen around the 0.8550 level.
The euro consolidated against the dollar and the yen after showing bullish trend in the Asian session. The euro-yen pair was trading at 127.70 around 6:50 am ET, pulling away from a session's high of 128.08. Against the dollar, the European shared unit traded in a narrow range of 1.3003 and 1.3040.
With soft U.S. GDP data easing fears of Fed pullback, investors await another batch of U.S. economic data on weekly jobless claims, personal income and & spending, and pending home sales later in the New York session for further clues on the interest rate outlook.
