CANBERA (Alliance News) - The euro advanced against other major currencies in European deals on Monday after Eurozone consumer price inflation slowed in March, giving room for the European Central Bank to act upon when it meets this week.
Eurozone inflation slowed more than expected in March, flash estimates published by Eurostat showed today.
Inflation fell to 0.5% in March from 0.7% in February. The rate was forecast to fall to 0.6%.
Core inflation excluding energy, food, alcohol and tobacco, came in at 0.8%, down from 1% in February.
The figure has been staying below the European Central Bank's target of 'below, but close to 2%' for the fourteenth consecutive month.
With the central bank's interest rates being at record-low of 0.25%, some analysts are expecting it to adopt less conventional measures to ease its monetary policy.
The euro snapped back from an early low of 1.3725 against the greenback, rising to a 4-day high of 1.3779. The next possible upside target for the euro lies around the 1.385 mark.
The euro hit a 4-day high of 0.8285 against the pound, moving away from a recent low of 0.8251. Further rally may lead the euro to a resistance around the 0.835 zone.
Continuing early rally, the euro hit 142.30 against the yen for the first time since March 13. The euro is poised to break upside target at the 144.00 region.
The euro advanced to a 4-day high of 1.2204 against the franc, up from Friday's closing quote of 1.2192. If the euro extends gain, it is likely to find upside target around the mark.
The 18-nation currency drifted up to 4-day highs of 1.4941 against the aussie, 1.5925 against the kiwi and 1.5257 against the loonie. Extension of rally may see the euro finding resistance around 1.50 against the aussie, 1.60 against the kiwi and 1.535 against the loonie.
At 8:30 am ET, Canada gross domestic product data for January is set for release.
The Federal Reserve Chair Janet Yellen will speak at Development conference in Chicago at 9:55 am ET.
