In early European deals on Tuesday, the euro strengthened to a 4-day high against the dollar, the franc and the yen on the back of a rise in equities.
Taking cues from Asia, where most stocks ended higher, the European stock markets opened the day in green. Germany’s DAX rose 1.1% in early deals, France’s CAC 40 index climbed 1.9% and U.K.’s FTSE 10 index soared 1.2%.
The euro tumbled to multi-day lows in early Asian deals against most major currencies as most Asian stocks opened lower, but the euro bounced back shortly as the equities rebounded.
The euro that fell to a 5-day low of 109.15 against the yen and 1.2482 against the dollar in early Tuesday Asian deals at 8:50 pm ET recouped its losses thereafter and has been climbing further in early European session. As of now, the euro is trading at a 4-day high of 1.2597 against the dollar and 110.62 against the yen. The next upside target level for the euro is seen at 1.261 against the US dollar and 110.75 against the Japanese currency.
The euro that plunged to a 4-day low of 1.3286 against the Swiss franc at 2:40 am ET Tuesday moved sideways thereafter, but the euro spiked up at 3:15 am ET as the franc plunged on Swiss CPI report. Currently, the euro-franc pair is trading at a 4-day high of 1.3365 with 1.344 seen as the next upside target level.
Swiss consumer price inflation slowed to 0.5% in June from 1.1% in May, data released by the Federal Statistical Office showed. The rate was much smaller than the expected figure of 0.9%. A year ago, consumer prices had dropped 1%. On a monthly basis, prices fell 0.4% in June, which was slightly faster than a 0.1% decline economists had foreseen.
The euro gained against the pound after touching a low of 0.8267 in early Tuesday Asian deals at 9:55 pm ET. However, after hitting a high of 0.8293 at 12:50 am ET, the euro-pound pair showed choppy trading. Presently, the pair is worth 0.8285.
There are no significant economic reports due for release from Europe in the upcoming hours. So, investors attention turn toward the New York session, in which the U.S. ISM non-manufacturing composite index is slated for release at 10:00 am ET.