The euro advanced against other major currencies during Wednesday’s European deals on the back of a rise in domestic stocks. The euro rose to a 2-day high against the U.S. dollar and the pound.
Even though the Asian stocks closed the day in a negative territory, the European stocks opened the day higher. At 6:39 am ET, U.K’s benchmark FTSE 100 index gained 31 points or 06, Germany’s DAX was up by 36 points or 0.6%. While, France’s CAC 40 garnered 28 points or 0.8%.
Eurozone annual inflation eased to 1.4% in June from 1.6% in May, according to a flash estimate issued by Eurostat today, the statistical office of the European Union. This came slightly below analyst forecasts for a 1.5% inflation rate.
In Germany, the unemployment decreased 21,000 in June following a revised decline of 41,000 in May, data released by the Federal Labor Agency showed today. The number of unemployed decreased for the twelfth consecutive month. Economists had forecast a decline of 30,000. But, the jobless rate remained unchanged at 7.7%.
Besides the euro-zone CPI and German unemployment data, few reports, which include Italian business confidence data for June and PPI for May and the preliminary CPI data for June were released today. But these reports failed to make any significant impact on the euro’s move.
The euro has been extending its uptrend against the U.S. dollar during European session on Wednesday. The euro rose to a 2-day high of 1.2305 against the greenback at 6:15 am ET. If the euro gains further, it may target around the 1.240 level. The euro-greenback pair, which closed yesterday’s trading at 1.2190, is now worth 1.2291.
Continuing its uptrend, the euro rose to 109.15 against the Japanese currency at 6:15 am ET. At present, the euro is worth 108.82 against the yen, up from yesterday’s close of 107.99. If the euro gains further, it may target around the 110.90 level.
In economic news, Markit Economics said today that the Japan Nomura / JMMA manufacturing purchasing managers’ index stood at a seasonallyadjusted 53.9 in June, down from 54.7 in the previous month. This marks the twelfth straight month in which the manufacturing sector has recorded growth.
The euro-pound pair rose to a 2-day high of 0.8182 at 6:00 am ET, an appreciation of 1%, compared to yesterday’s closing quote of 0.8095. Presently, the euro is trading at 0.8172 against the pound with 0.828 seen as the next upside target level.
The euro-franc pair has appreciated 0.6%, over yesterday’s close and is now trading at 1.3272. At yesterday’s close the pair was worth 1.3188. On the upside, the euro may target 1.340 against the franc.
Switzerland’s KOF Economic Institute today showed that the leading indicator in June moved up to 2.25 from 2.16 in May. This set the highest level for the economic barometer since August 2006. Economists had expected the index to remain at 2.16 in June.
From the U.S., ADP National Employment report and the results of the Institute of Supply Management-Chicago’s business survey – both for June have been slated for release in the up coming hours.