Euro Higher As Central Bank Meetings In Focus
14 December 2021 - 6:01PM
RTTF2
The euro advanced against its most major counterparts in the
European session on Tuesday, as investors looked to key central
bank meetings this week for the next move on the monetary
policy.
The Fed will begin its two-day meeting later in the day, with
policy makers expected to announce a faster tapering of its asset
purchase programme.
Investors await more clues about the possible timing of a first
rate hike in 2022.
The European Central Bank will deliver its policy decision on
Thursday, confirming an end to the pandemic emergency purchase
program in March 2022.
Data from Eurostat showed that Eurozone industrial production
recovered unexpectedly in October.
Industrial output grew 1.1 percent on a monthly basis, reversing
a 0.2 percent fall in September. Economists had forecast the
production to fall 0.5 percent in October.
The euro appreciated to a 4-day high of 0.8553 against the pound
and a 5-day high of 128.52 against the yen, off its early low of
0.8529 and a 4-day low of 127.99, respectively. The euro is likely
to find resistance around 0.87 against the pound and 130.00 against
the yen.
The euro touched 8-day highs of 1.4506 against the loonie and
1.6755 against the kiwi, up from its prior lows of 1.4425 and
1.6676, respectively. Next key resistance for the euro is seen
around 1.48 against the loonie and 1.70 against the kiwi.
The European currency edged higher to 1.1316 against the
greenback, from a low of 1.1266 seen at 3 am ET. If the euro climbs
further, 1.15 is likely seen as its next resistance level.
The euro rose back to 1.5896 against the aussie, not far from a
weekly high of 1.5907 it touched in the Asian session. The euro is
seen finding resistance around the 1.62 area.
In contrast, the euro was down against the franc, at an 8-day
low of 1.0390. On the downside, 1.02 is likely seen as its next
support level.
Looking ahead, U.S. PPI for November is scheduled for release in
the New York session.
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