The European currency showed mixed performance on Wednesday’s early European trading as traders await a flurry of economic reports, which will be released in the upcoming trading hours.
While the common currency shed some of its previous session’s gains against the Japanese yen, it recovered losses that incurred in the previous session against other major rivals. The euro thus recovered from a 2-day low against the franc and a 5-day low against the dollar.
Germany’s Federal Statistical Office is slated to release unemployment statistics for March at 3:55 am ET. The number of unemployed people is expected to rise by 7,000.
Unemployment data is also due from the Italian statistical office ISTAT shortly later at 4:00 am ET. Economists see the unemployment rate rising to 8.7% in February from 8.5% in January.
Producer price inflation statistics are due from ISTAT simultaneously. The producer price index is tipped to rise 0.3% annually in February.
At 5:00 am ET, Eurostat is scheduled to release inflation statistics for March. The year-on-year HICP inflation rate is forecast to rise to 1.1% from 0.9%.
Unemployment data is also due simultaneously from the eurozone. Economists expect the unemployment rate to edge up 10% in February from 9.9% in the prior month.
In the meantime, the Italian statistical agency is set to release inflation data for March. The consumer price index is expected to rise by 1.3% on a yearly basis and by 0.2% on a monthly basis.
Latest report from the euro-area showed that French producer price index or PPI increased 0.1% month-on-month in February, slower than a revised 0.6% growth in the previous month, the statistical office INSEE said today. On an annual basis, the PPI climbed 1% in February.
On the flip side, citing weakness in banking sector and possibility of weaker-than-expected global trade, the International Monetary Fund slashed its growth estimate for Germany today. The IMF said economic recovery is likely to be moderate and fragile and the economy is forecast to grow 1.2% in 2010, down from the previous estimate of 1.5%.
The euro that reached as low as 0.8887 against the pound around 12:30 am ET reversed its course thereafter. As of 2:40 am, the single currency soared to 0.8915 versus the sterling and the pair leveled off thereafter. The euro-pound pair was worth 0.8904 at Tuesday’s close.
The euro that dropped to a 2-day low of 1.4295 against the Swiss franc by 12:10 am ET bounced back and hit as high as 1.4324 around 3:00 am. The euro-franc pair is presently trading at 1.4321 and the near-term resistance level for the pair is seen at 1.4335.
The Swiss leading indicator data is due from the KOF institute at 5:30 am ET. The leading index is tipped to rise to 1.90 in March from 1.87 in February.
The euro also advanced to 1.3433 against the US dollar at 3:00 am ET, bouncing from a 5-day low of 1.3386 hit earlier in the session. The euro-buck pair is presently worth near Tuesday’s closing quote of 1.3415.
Looking ahead, the U.S. ADP employment report and the Chicago PMI-both for March, factory goods orders data for February are expected in the New York morning.
The euro, however, pared some of its previous session’s gains against the Japanese yen, slipping to 124.90 by 2:15 am ET. The euro-yen pair is presently quoted at 125.08, compared to 124.45 hit late New York Tuesday.
The yen declined earlier as Japan’s benchmark Nikkei 225 index rose to a new 18-month high, which prompted investors to seek riskier assets.