Euro Climbs Amid Vaccine Rollout, Stimulus Hopes
The euro climbed against its most major counterparts in the
Asian session on Monday, as progress in the rollout of a COVID-19
vaccine and hopes of U.S. fiscal stimulus supported riskier
Shipments of the Pfizer/BioNTech vaccine have begun in the US,
with vaccinations beginning today.
Further underpinning risk sentiment was extension of Brexit
talks to strike a trade deal between the European union and the
Prime Minister Boris Johnson and EU Commission President Ursula
von der Leyen agreed to "go the extra mile" in coming days to reach
deal in order to avert a hard Brexit at the end of the month.
U.S. lawmakers plans to unveil a $908 billion coronavirus
pandemic relief plan in two separate bills in a bid to win approval
and could be presented as early as today.
One will be a $748 billion proposal, which includes funding for
small businesses, the jobless and COVID-19 vaccine
The second bill will have liability protections for business and
$160 billion in state and local aid.
The euro advanced to 1.2157 against the greenback and 126.39
against the yen, after falling to 1.2116 and 125.98, respectively
in early deals. The next possible resistance for the euro is seen
around 1.25 against the greenback and 128.00 against the yen.
The euro hit a 6-day high 1.0792 against the franc and 4-day
high of 1.5499 against the loonie, reversing from its early lows of
1.0776 and 1.5463, respectively. If the euro rises further, 1.10
and 1.56 are possibly seen as its next resistance levels against
the franc and the loonie, respectively.
In contrast, the single currency eased off to 1.7090 against the
kiwi and is on track to pierce near a 2-week low of 1.7071 seen at
the beginning of the Asian session. On the downside, 1.65 is likely
seen as its next support level.
The euro edged down to 1.6045 against the aussie from Friday's
closing value of 1.6067. The euro is seen finding support around
the 1.55 level.
The common currency declined to a 4-day low of 0.9063 against
the pound from last week's closing quote of 0.9151. Next key
support for the euro is possibly seen around the 0.88 level.
Looking ahead, Eurozone industrial production for October is due
in the European session.