Euro Rises Amid Higher European Stocks

The euro advanced against its most major counterparts in the European session on Thursday, in tandem with rising German bond yields, and on improved risk sentiment amid easing trade war fears between the U.S. and China.

Optimism about potential negotiations between the U.S. and China to withdraw from their tariff plans reduced fears over trade spat.

Trump's top economic adviser Larry Kudlow defended the administration's proposed tariffs on Chinese goods, saying such an approach could be a tactic to get China to negotiate on trade practices.

The benchmark yield on German 10-year bunds rose 0.5 percent. Yields move inversely to bond prices.

Final data from IHS Markit showed that Eurozone private sector activity expanded at the weakest pace since the start of 2017 as rates of growth moderated in both manufacturing and services.

The composite output index fell to 55.2 in March from 57.1 in February. The score was also below the flash estimate of 55.3.

Data from Eurostat showed that Eurozone retail sales increased at a slower-than-expected pace in February after falling in the previous two months.

The volume of retail sales edged up 0.1 percent month-over-month in February, reversing January's 0.3 percent drop, which was revised from a 0.1 percent fall reported earlier.

Figures from Destatis showed that Germany's factory orders recovered in February but the pace of expansion was much weaker than expected.

Factory orders rose 0.3 percent month-on-month in February, reversing a revised 3.5 percent decrease seen in January. Economists had forecast a 1.5 percent rise.

The single currency bounced off to 1.2284 against the greenback, from more than a 2-week low of 1.2249 hit at 3:00 am ET. The next possible resistance for the euro is seen around the 1.25 level.

Reversing from an early low of 0.8716 against the pound, the euro edged up to 0.8738. The euro is seen finding resistance around the 0.90 region.

Survey data from IHS Markit showed that the UK service sector expanded at the weakest pace since July 2016 due to bad weather.

The IHS Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index fell more-than-expected to 51.7 in March from 54.5 in February. The score was forecast to drop to 54.0.

The euro hit a weekly high of 131.48 against the yen, compared to Wednesday's closing value of 131.10. On the upside, 132.5 is seen as the next resistance level for the euro.

The 19-nation currency recovered to 1.6873 against the kiwi, 1.5991 against the aussie and 1.5697 against the loonie, from its early 1-1/2-month low of 1.6780, 2-week low of 1.5899 and a multi-week low of 1.5641, respectively. The euro is likely to find resistance around 1.70 against the kiwi, 1.62 against the aussie and 1.59 against the loonie.

On the flip side, the euro pulled back to 1.1786 against the franc, from an early 2-1/2-month high of 1.1805. On the downside, 1.15 is seen as the next support level for the euro.

Looking ahead, Canadian and U.S. trade data for February and U.S. weekly jobless claims for the week ended March 31 are scheduled for release in the New York session.

Euro vs Yen (FX:EURJPY)
Graphique Historique de la Devise
De Mar 2024 à Avr 2024