Tuesday in Asia, the euro climbed against most major currencies on speculation that the European officials will sanction additional assistance for Greece.
While a “total” restructuring of Greek debt is not an option, European Union leaders will try to resolve the Greek problem by the end of next month, the head of the euro group Jean-Claude Juncker said Monday.
The euro climbed to near 4-week high against the loonie, 6-day high against the pound, 4-day high against the franc and 11-day highs against the aussie, yen and the greenback.
Most Asian stock markets are trading higher on optimism over more assistance for Greece.
The euro rose to an 11-day high of 1.3440 against the Australian currency in Asian trading and the next upside target level for the euro is seen at 1.36. The pair, which closed yesterday’s trading at 1.3363, is now trading at 1.3434.
The Australian Bureau of Statistics said that the number of building approvals in Australia declined in April after a sharp increase in the previous month. Building approvals dropped 1.3 percent month-on-month in seasonally adjusted terms.
Another data from the Australian Bureau of Statistics revealed that Australia’s current account deficit increased in the first quarter. In seasonally adjusted terms, the current account deficit increased 29 percent from the December quarter of 2010 to A$10.45 billion during the March quarterThe April figure missed expectations for a 2.2 percent increase following the 15.5 percent plunge in March – which was the largest monthly decline on record.
On an annual basis, output declined 14.0 percent – again shy of estimates for a 12.4 percent decline after shedding 13.1 percent in the previous month.
Meanwhile, the Ministry of Communications and Internal Affairs said that the unemployment rate in Japan came in at a seasonally adjusted 4.7 percent in April – in line with expectations and up slightly from 4.6 percent in March.
The euro also spiked up to an 11-day high of 1.4407 against the greenback during the Asian session. On the upside, the euro may target the 1.46 level. The pair that closed yesterday’s trading at 1.4283 is now quoted at 1.4380.
Against the Canadian currency, the euro climbed to near a 4-week high of 1.4030 in the Asian deals. Presently, the euro is trading at 1.3998 versus the loonie and the next upside target level for the euro is seen at 1.42. The pair was worth 1.3959 at yesterday’s close.
Traders will have a busy European session today, in which Switzerland’s first quarter GDP and UBS consumption indicator for April, German retail sales for April and unemployment rate for May, French PPI and consumer spending for April, Eurozone CPI estimate for May and the unemployment rate for April are scheduled for release.
At 9:00 am ET, the Bank of Canada is due to announce its interest rate decision. The central bank is widely expected to keep rates on hold at 1 percent.
Canada’s industrial product price for April, U.S. S&P/Case-Shiller home price index for March, results of the Institute of Supply Management-Chicago’s business survey for May and the Conference Board’s consumer confidence report for April are also expected to influence trading in the New York morning session.
The single currency is now a quoted at a 4-day high of 1.2226 against the franc, compared to Monday’s close of 1.2174. The next upside target level for the euro is seen at 1.28.
Against the pound, the euro reached a 6-day high of 0.8714 in the Asian session, compared to yesterday’s close of 0.8671. The euro is now trading at 0.8696 against the pound with 0.88 seen as the next upside target level.
The European currency hit an 11-day high of 116.96 against the yen during the Asian session and if the euro gains further, it may target the 119.00 level. The euro-yen pair is presently worth 116.74, compared to yesterday’s New York session close of 115.60.
The yen dropped as Moody’s Investors Service placed the Japanese government’s Aa2 local and foreign currency bond ratings on review for possible downgrade. The rating agency said that the review was prompted by concern that faltering economic prospects and a weak policy response would make the government’s ability to achieve a credible deficit reduction target more challenging.
Early in the day, Japan’s Ministry of Economy, Trade and Industry said that the nation’s industrial output rose 1.0 percent in April compared to the previous month, continuing to reflect the results of the devastating earthquake and tsunami on March 11.