News Column

Euro Climbs On Risk Appetite

July 14, 2014

CANBERA (Alliance News) - The euro advanced against most major currencies in European deals on Monday amid risk appetite, as concerns over banking problems in Portugal eased, and traders focus on corporate earnings and Federal Reserve Chair Janet Yellen's semi-annual testimony to Congressional committees this week.

"To strengthen the confidence of customers, employees and the public, it is essential that the executive committee of Banco Espirito Santo be replaced as soon as possible by a new team," the Bank of Portugal said after an extraordinary meeting on Sunday with the board of directors of the lender.

Federal Reserve Chair Janet Yellen is scheduled to deliver her semi-annual policy testimony to the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday.

Investors await for quarterly results from a slew of blue-chip companies including Citigroup, Goldman Sachs, JP Morgan, Intel, Bank of America, IBM, Morgan Stanley and General Electric for further direction.

At 1 pm ET, European Central Bank President Mario Draghi is due to speak at the European Parliament in Strasbourg. His speech will be closely watched for more details about the central bank's work on asset purchase program.

In economic news, Eurozone industrial production declined in May for the second time this year, estimates published by Eurostat showed.

Industrial production fell 1.1% month-on-month, reversing the 0.7% rise in April. Output was expected to drop 1.2%.

The euro appreciated to a 4-day high of 138.40 against the yen, after having fallen to 137.72 at the commencement of today's trading. If the euro extends rise, 139.00 is seen as its next possible resistance level. At Friday's close, the pair was trading at 137.80.

The euro advanced to a 4-day high of 1.3639 against the US dollar from its prior low of 1.3595. The pair was quoted at 1.3606 when it ended deals last week. The next possible upside target for the euro-greenback pair lies around the 1.37 mark.

Recovering from an early low of 0.7938 against the pound, the euro rose to a 4-day high of 0.7964. On the upside, 0.806 is seen as next possible upside target for the euro-pound pair. The euro ended Friday's trading at 0.7937 against the pound.

The euro climbed to near a 4-week high of 1.4651 against the Canadian dollar, 4-day highs of 1.4517 against the aussie and 1.5472 against the kiwi, and held steady thereafter. The next possible resistance for the euro is seen around 1.474 against the loonie, 1.56 against the kiwi and 1.46 against the aussie.

Meanwhile, the euro moved away from an early 4-day high of 1.2147 against the franc and eased back to 1.2135.The euro is thus heading to pierce its early near 2-week low of 1.2134. The euro may possibly face support around the 1.21 mark.

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Source: Alliance News

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