Euro Advances As Bond Yields Stabilize, French Industrial Output Beats Forecasts
10 Marzo 2021 - 02:08AM
RTTF2
The euro appreciated against its major counterparts in the
European session on Wednesday, as Eurozone bond yields stabilized
and French industrial production rose more than expected in
January, ahead of the European Central Bank decision due
tomorrow.
Data from the statistical office Insee showed that France's
industrial production rebounded at a faster than expected pace in
January.
Industrial production grew 3.3 percent month-on-month in
January, reversing a 0.7 percent fall in December. Economists had
forecast an increase of 0.5 percent.
Manufacturing output also expanded 3.3 percent, in contrast to
December's 1.4 percent fall. The growth was largely driven by an
8.4 percent rise in machinery and equipment goods production and
7.2 percent rise in coke and refined petroleum products output.
The major focus for markets will be the ECB's monetary policy
decision on Thursday. Policymakers are expected to keep rates on
hold but could step up the pace of asset purchases to counter the
rise in the bond yields.
Investors awaited U.S. inflation data and a critical 10-year
bond auction for further direction.
The euro rose to 1.1905 against the greenback and 129.43 against
the yen, from its early lows of 1.1869 and 128.96, respectively.
The euro is likely to face resistance around 1.20 against the
greenback and 131.5 against the yen.
The euro reversed from its early 8-day low of 1.1030 against the
franc, with the pair trading at 1.1078. Should the euro rises
further, 1.13 is possibly seen as its next resistance level.
The euro advanced to 0.8579 against the pound, after touching
0.8550, which was its lowest level since February 24. The euro may
possibly face resistance around the 0.87 level.
In contrast, the euro pulled back to 1.5038 against the loonie,
from a 2-day high of 1.5062 hit at 4:00 am ET. The euro is seen
finding support around the 1.48 level.
The euro held steady against the aussie, after having eased from
a high of 1.5478 seen at 1:15 am ET. At yesterday's close, the pair
was worth 1.5416.
Data from the Australian Bureau of Statistics showed that
Australia building permits dropped a seasonally adjusted 19.4
percent on month in January - standing at 15,926.
That was in line with expectations following the 12.0 percent
gain in December.
After rising to 1.6644 in late Asian deals, the euro retreated
to 1.6598 versus the kiwi and held steady thereafter. This may be
compared to a 1-week low of 1.6560 hit at 5:15 pm ET. The pair had
closed yesterday's deals at 1.6580.
Looking ahead, U.S. CPI for February will be published in the
New York session.
At 10:00 am ET, the Bank of Canada announces decision on
interest rates. Economists forecast the benchmark rate to hold at
0.25 percent.
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