RTTN:Euro Strengthens As Eurozone Economic Confidence Index Rise Unexpectedly
The European currency climbed against other major currencies on Wednesday's European session as Eurozone economic confidence index was better-than-expected in January.
The survey results from European Commission showed that the economic confidence index climbed to 89.2 from 87.8 in December and stayed above the consensus forecast of 88.2.
The consumer confidence improved to -23.9 from -26.3 a month ago.
Investors eagerly awaited the Federal Reserve's policy statement for any signals of possible early monetary tightening, even though few expect any shift in the Fed's accommodative stance for the time being.
The euro is now trading at 1.3546 against the greenback, its highest level since December 2011. The euro thus appreciated 0.39 percent against the dollar from yesterday's close of 1.3493. On the upside, the euro may break 1.36 level.
Against the Japanese unit, the euro surged up to 123.74 for the first time since May 2010, adding percent 1.06. The next resistance level for the euro-yen pair is seen at 125.00. At Tuesday's close, the pair traded at 122.44.
U.K. mortgage approvals for house purchases increased more than expected to 55,785 in December from 54,011 in November, the Bank of England said today. It was forecast to rise to 54,500.
The European single currency spiked higher to a 13-1/2-month high of 0.8598 against the Sterling with 0.865 seen as the next likely upside target level. The pair finished yesterday's deals at 0.8562.
The euro climbed to a 7-1/2-month high of 1.6255 against the kiwi, up from Tuesday's New York session close of 1.6078. The next upside target level for the euro is seen around 1.63 level.
The number of building permits issued in New Zealand rebounded in December, data from Statistics New Zealand showed today.
Permits issued for buildings, including apartments, climbed 9.4 percent month-on-month on a seasonally adjusted basis. This followed a 5.2 percent fall in November.
Against the aussie and the loonie, the euro strengthened to a fresh 8-month high of 1.2988 and a 2-day high of 1.3598 and the euro may face next resistance level around 1.305 and 1.365, respectively.
The US ADP employment, GDP and the FOMC rate decision are the key data to watch in the North American session.
