Market Commentary and Intraday News
Euro Strengthens Against Most Majors After ECB Monthly Report
251 days ago
(RTTNews) - The European common currency showed strength against most major currencies after the release of European Central Bank's October monthly report and some key economic data in European deals on Thursday.
The latest monthly bulletin released by the European Central Bank today said the governments should continue to implement necessary measures to reduce both fiscal and structural imbalances.
The bank said Eurozone countries should proceed further with financial sector restructuring measures.
The ECB observed that the risks surrounding the economic outlook continue to be on the downside. The bank said the underlying pace of monetary expansion remains subdued.
In early session today, the Federal Statistical Office reported that Germany's harmonized index of consumer prices (HICP) decelerated to 2.1 percent in September from 2.2 percent in August, in line with the preliminary estimates.
On a monthly basis, the HICP remained unchanged in September, as estimated earlier. In August, prices had increased 0.4 percent month-on-month.
At the same time, the consumer price index (CPI) increased 2 percent year-on-year in September, unchanged from the preliminary estimates. In August, consumer prices increased 2.1 percent annually. On a monthly basis, the CPI remained flat as seen in the flash estimates, data showed.
In an another report released by the same agency showed that France's harmonized index of consumer prices (HICP) increased 2.2 percent year-on-year in September, slower than the 2.4 percent gain economists had forecast.
On a monthly basis, the HICP decreased 0.3 percent in September, while economists expected it to remain unchanged.
At the same time, inflation as per the consumer price index eased to 1.9 percent in September from 2.1 percent in August, defying economists' forecast for an acceleration to 2.2 percent.
At around 5:30 am ET, the euro advanced to 0.8048 against the British pound, 100.73 versus the Japanese yen and 1.2893 against the US dollar from early Asian session's lows of 0.8025, 100.18 and 1.2827, respectively.
Currently, the euro is worth 0.8046 against the sterling, 100.70 versus the yen and 1.2887 versus the greenback.
U.S. weekly jobless claims for the week ended October 6th, trade data for August and import price index for September and Canadian trade data and new housing price index for August are likely to influence trading in the New York session.
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