RTTN:Euro Strengthens On Improved Eurozone Economic Confidence Index
The European currency climbed against most major opponents on Wednesday after a report showed that the Eurozone economic confidence improved for the fourth straight month in February.
The survey data from the European Commission showed that the economic sentiment index came in at 91.1, up from 89.5 in the prior month. The reading stayed above the consensus forecast of 89.9.
Also services confidence continued the upward trend it has been following since October. The index rose to -5.4 from -7.7 in January.
However, inconclusive Italian election results weighed on investor sentiment. While center-left Democratic Party led by Pier Luigi Bersani was slightly ahead in the Lower House, he was not able to secure Senate majority needed to form a government. Unless Italian parties form a governing coalition, fresh elections may be necessary.
The euro advanced to 1.3123 against the U.S. dollar, up from Tuesday's close of 1.3063. The next upside target level for the euro-greenback pair is seen at 1.32.
The euro traded back to 120.43 against the yen, recouping from an early low of 119.54. The pair ended yesterday's deals at 120.16.
The European single currency touched an intraday high of 1.2199 against the franc from yesterday's New York session close of 1.2178. If the euro gains further, it may break 1.225 level.
Against the loonie and the aussie, the euro hit 2-day highs of 1.3469 and 1.2867, respectively. On the upside, the euro may face next target levels at 1.35 against the loonie and 1.295 against the aussie. The euro finished yesterday's deals at 1.3406 against the loonie and 1.2773 against the aussie.
The euro reached 1.5920 against the NZ dollar, its highest level since February 21. The euro is likely to test next resistance level at 1.595. At Tuesday's close, the pair traded at 1.5835.
The U.S. durable goods orders and pending home sales-both for January are due in the North American session.
