News Column

Euro Mixed Following Eurozone Inflation Data

July 17, 2014

CANBERA (Alliance News) - The European currency showed mixed trading against its major counterparts in the European session on Thursday, after data showed that Eurozone inflation held steady as initially estimated in June.

The final data from Eurostat showed that the eurozone inflation held steady at 0.5% as initially estimated in June. Month-on-month, prices gained only 0.1%. Headline inflation continues to remain below the European Central Bank's target of 'below, but close to 2%'.

Inflation in EU was 0.7%, up from 0.6% in May.

Meanwhile, Eurozone construction output declined notably in May, after rebounding in the previous month, a separate data showed. Construction output fell 1.5% monthly in May, after rebounding 0.4% increase in the previous month, which was revised down from 0.8% reported initially.

Moving away from an early near 2-year low of 0.7888 against the pound, the euro rose to 0.7910. The euro may test resistance near the 0.80 region.

Against the Swiss franc, the euro slipped to a 2-day low of 1.2143 and held steady thereafter.

Having fallen to an early session's low of 1.3519 against the US dollar, the euro advanced to 1.3539 in European deals. Continuation of bullish trend may lead the euro to a resistance around the 1.36 mark.

The euro rose back to 137.40 against the yen, from an early multi-month low of 137.21. On the upside, 138.13 is seen as next resistance level for the euro.

Pulling away from an early high of 1.4462 against the Australian dollar, the euro eased to more than a 2-week low of 1.4414 and held steady thereafter.

Australian business confidence eased in the second quarter of this year, but remained at relatively resilient levels post-budget, survey results from the National Australia Bank showed Thursday. The NAB business confidence index fell slightly to 6 in the second quarter from 7 in the previous quarter.

Against the NZ dollar, the euro edged up to 1.5583 from an early low of 1.5512. If the euro continues its uptrend, it is likely to find resistance around the 1.56 region.

The results of a survey by the ANZ Bank and the Roy Morgan Bank showed that New Zealand's consumer confidence rose to 132.7 in July from 131.9 in June. This marked the second straight month of improvement after confidence hit a six-month low in May.

The euro rose to 1.4545 against the Canadian dollar, from an early low of 1.4506. If the euro extends gain, it may find resistance at the 1.46 level.

Looking ahead, US weekly jobless claims for the week ended July 12, building permits and housing starts for June and Philadelphia Fed's manufacturing index for July are due in the New York session.

At 1:35 pm ET, US Federal Reserve Bank of St. Louis President James Bullard will deliver a speech on monetary policy in Owensboro, Kentucky.

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Source: Alliance News

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