RTTN:Euro Rebounds Slightly As Eurozone Economic Sentiment Index Rises
In European deals on Friday, the euro recovered slightly against other major currencies as a report showed that Eurozone economic confidence improved for the fourth consecutive month in August.
However, the euro's gains were capped on concerns about U.S. military action against Syria and uncertainty relating to Federal Reserve's asset purchase program.
The survey data from the European Commission showed that Eurozone economic confidence index climbed to 95.2 from 92.5 in July. The reading was above the consensus 93.8.
The strong increase resulted from pronounced improvements in confidence among consumers and managers in industry, services and retail trade.
Consumer price inflation in the euro area weakened in August, and to a larger extent than economists had forecast, latest data showed today.
Inflation as per the harmonized index of consumer prices (HICP) slowed to 1.3 percent, after staying unchanged at 1.6 percent in July, preliminary estimated published by statistical office Eurostat revealed. Economists had forecast inflation to ease to 1.4 percent.
Meanwhile, unemployment rate in Eurozone held steady at record 12.1 percent in July, in line with forecasts, data showed.
The jobless rate has remained at this level for the fourth consecutive month.
The euro recovered to 1.3253 against the greenback after the report, off an early low of 1.3223. The euro is likely to find resistance around 1.33 level.
After falling to a 9-day low of 0.8520 against the pound in prior deals, the euro strengthened to 0.8553. On the upside, the euro may probably challenge resistance at 0.86 level.
U.K. mortgage approvals increased to the highest level in more than five years, adding to signs that the housing market recovery is gathering pace in July.
Mortgage approvals for house purchases increased to 60,624 in July, the highest since March 2008, from 58,238 in June, the Bank of England said today
Bouncing slightly from an early 10-day low of 129.61 against the yen, the euro reached 130.09. The next likely upside target for the euro is seen around 130.00 level.
The euro ticked up to 1.2323 against the franc from a low of 1.2305 hit at 4:05 am ET. If the euro climbs further, its next possible resistance lies at 1.24 area.
Switzerland's leading economic indicator increased for the fifth successive month in August, and to a larger extent than economists had forecast, latest data showed today.
The KOF Economic Barometer increased to 1.36 in August from July's revised score of 1.25, survey data released by the KOF Economic Institute revealed
The euro that fell to an early 4-day low of 1.4766 against the aussie and an 8-day low of 1.6963 against the NZ dollar erased losses, approaching 1.4836 and 1.7078, respectively in European deals.
The European single currency rose to 1.3955 against the Canadian dollar in European trading, following a fall to 1.3922 at 3:05 am ET. The euro may face resistance around 1.41 level.
Canada GDP data for the second quarter, the U.S personal income and spending data for July and Reuters/University of Michigan's final consumer sentiment index for August are due in the New York session.
