Euro Firms As Lockdown Restrictions Ease
29 Abril 2020 - 03:06AM
RTTF2
The euro gained ground against its most major counterparts in
the European session on Wednesday, as investors cheered reopening
of several nations in Europe as rate of new coronavirus cases and
deaths slowed.
Spanish Prime Minister Pedro Sanchez on Tuesday outlined plan to
gradually ease restrictions from May 4.
The PM detailed a four-phase plan to relax measures which is
intended to be completed by the end of June.
Oil prices rebounded as U.S. inventories rose less than expected
last week and easing coronavirus lockdown restrictions spurred
hopes for a pick up in demand.
The Federal Reserve is set to finish its two-day meeting later
today, with investors looking for guidance on the trajectory of the
world's largest economy.
The European Central Bank meets Thursday following Fitch's
decision to downgrade its rating on Italian debt to BBB-, one notch
above junk.
Survey results from the European Commission showed that Eurozone
economic confidence deteriorated sharply amid coronavirus pandemic
in April and reached near the lowest levels seen during the Great
Recession in March 2009.
The economic confidence index fell to 67.0 in April from 94.2 in
March. This was the strongest monthly decline since 1985.
The euro rose to 1.0874 against the greenback from Tuesday's
closing value of 1.0819. The euro is seen finding resistance around
the 1.10 region.
The euro firmed to a 5-day peak of 0.8755 versus the pound,
compared to 0.8702 hit late New York Tuesday. If the euro rises
further, 0.89 is possibly seen as its next resistance level.
Data from the British Retail Consortium showed that UK shop
prices declined at a faster pace in April amid lockdown as non-food
prices fell most since 2006.
The BRC-Nielsen shop price index fell 1.7 percent year-on-year
in April.
Reversing from a 2-day low of 1.0541 hit at 5:00 pm ET, the euro
moved up to 1.0575 against the Swiss franc. The euro is poised to
target resistance around the 1.00 mark. The euro recovered to
1.6681 against the aussie and 1.7858 against the kiwi, from its
early more than 2-month low of 1.6579 and near 2-month low of
1.7735, respectively. The next possible resistance for the euro is
seen around 1.70 against the aussie and 1.86 against the kiwi.
In contrast, the euro declined to 115.46 versus the yen, its
lowest since April 2017. On the downside, 111.00 is possibly seen
as the next support level for the euro.
The euro fell back to 1.5119 versus the loonie, heading to
pierce near 2-month low of 1.5114 set in the Asian session. Next
key support for the euro is likely seen around the 1.48 mark.
Looking ahead, U.S. GDP data for the first quarter and pending
home sales for March are due in the New York session.
At 2:00 pm ET, the Fed announces its decision on interest rate.
Economists widely expect the federal funds rate to be kept at 0.25
percent.
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