Euro Advances On Strong German Data, Rising European Shares
02 Agosto 2021 - 08:17AM
RTTF2
The euro climbed against its major opponents during the European
session on Monday, as German retail sales and manufacturing PMI
data beat forecasts and strong corporate earnings lifted European
shares.
Risk sentiment improved after the US Senators took a step closer
towards passage of the infrastructure bill.
The U.S. Senate finalized details of infrastructure plan on
Sunday, which proposes $550 billion in new spending over five
years.
The bill, which includes funding for roads, bridges, public
transport, broadband, rail, water and airports, is expected to be
approved within days.
Biden administration said that the bill is aimed to invest in
infrastructure and create jobs without raising taxes.
Data from Destatis showed that Germany's retail sales growth
exceeded expectations in June as the relaxation of restrictions
related to the pandemic supported consumer demand.
Retail sales grew 4.2 percent month-on-month in June, much
faster than the economists' forecast of 2 percent. Nonetheless, the
latest increase was slower than the 4.6 percent growth logged in
May.
Final data from IHS Markit showed that Germany's manufacturing
sector growth accelerated further and was the third highest in any
month since the survey began in 1996.
The factory PMI rose to 65.9 in July from 65.1 in June and also
above the flash 65.6.
The euro rebounded to 1.0765 against the franc, after falling to
1.0739 in the previous session, which was its lowest level since
January 18. If the euro rises further, 1.10 is possibly seen as its
next resistance level.
The euro rose to 1.1889 against the greenback and 130.42 against
the yen, off its early lows of 1.1859 and 130.03, respectively. The
euro is likely to find resistance around 1.21 against the greenback
and 133 against the yen.
The euro touched a 4-day high of 1.4824 against the loonie, up
from last week's close of 1.4797. The euro is seen finding
resistance around the 1.51 region.
The euro firmed to a 6-day high of 0.8545 against the pound from
Friday's closing value of 0.8529. The next possible resistance for
the currency is seen around the 0.88 level.
In contrast, the European currency retreated to 1.6153 against
the aussie and 1.7011 against the kiwi, from its prior more than a
7-month high of 1.6184 and a 5-day high of 1.7058, respectively.
The euro may locate support around 1.60 against the aussie and 1.66
against the kiwi.
Looking ahead, U.S. ISM manufacturing PMI for July and
construction spending for June are set for release in the New York
session.
Grafico Cross Euro vs CAD (FX:EURCAD)
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