Euro Rises As Eurozone Economic Confidence Strengthens

The euro strengthened against other major currencies in the European session on Thursday, after data showed that Eurozone economic confidence strengthened in September.

Data from the European Commission showed that Eurozone economic sentiment index rose to 113.0 in September from 111.9 in August. The reading was also above the expected 112.

Also, industrial confidence continued the rally it had embarked upon last autumn, thanks to managers’ higher production expectations and improved appraisals of the current level of overall order books.

The corresponding index climbed to 6.6 from 5.0. The expected score was 5.2.

The services sentiment indicator advanced slightly to 15.3 from 15.1. Broadly unchanged development reflected improved assessments of past demand being partially offset by lower demand expectations, as well as unchanged views on the past business situation.

Another data from the EU showed that the business sentiment index came in at 1.34 in September versus 1.08 in August.

In the Asian session today, the euro held steady against its major rivals.

In the European trading, the euro rose to 3-day highs of 0.8809 against the pound and 132.81 against the yen, from early lows of 0.8760 and 132.32, respectively. If the euro extends its uptrend, it is likely to find resistance around 0.89 against the pound and 134.00 against the yen.

The euro advanced to a 2-day high of 1.1464 against the Swiss franc, from an early 2-day low of 1.1409. The euro is likely to find resistance around the 1.16 region.

Against the U.S. and the New Zealand dollar, the euro edged up to 1.1774 and 1.6372 from early lows of 1.1721 and 1.6242, respectively. On the upside, 1.20 against the greenback and 1.66 are seen as the next resistance levels for the euro.

The euro advanced to 1.5054 against the Australian dollar, from an early low of 1.4950. This may be compared to an early 6-day high of 1.5055. The euro is likely to find resistance around the 1.52 region.

The euro edged up to 1.4689 against the Canadian dollar, from an early low of 1.4644. This may be compared to an early 3-day high of 1.4692. The euro may test resistance around the 1.48 region.

Looking ahead, at 8:00 am ET, German preliminary CPI for September is due.

In the New York session, U.S. weekly jobless claims for the week ended September 23, second quarter GDP data, advance goods trade balance and wholesale inventories for August are due.

At 9:45 am ET, Kansas City Fed President Esther George speaks on economy and…

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