Forex News: Euro Rises Amid Risk-on Mood

Euro Rises Amid Risk-on Mood

(RTTNews) - The euro strengthened against other major currencies in the European session on Wednesday, as European shares traded higher with French markets outperforming their regional peers, after LVMH, the owner of Louis Vuitton and Christian Dior, unexpectedly returned to sales growth in the third quarter.

In economic releases, data from Eurostat showed that the Eurozone's industrial production fell 1.2 percent in August due to steep drops in the production of capital goods and durable consumer products. Although the August figure was better than market predictions of a 1.6 percent decline, the fall reversed July's 0.5 percent growth.

France's consumer price inflation accelerated as initially estimated in September to the highest level in eight months, the latest data from the statistical office INSEE showed.

The consumer price index climbed 1.2 percent year-over-year in September, faster than the 1.0 percent rise in the previous month. That was in line with the flash data published on September 30.

Further, this was the highest inflation rate since January, when prices rose 1.7 percent.

Primoz Dolenc, the acting governor of Slovenia's central bank and a policymaker for the European Central Bank (ECB), stated on Wednesday that there is "no need to modify (interest) rates in the future months."

Trading later in the day may be influenced by the release of earnings from Morgan Stanley and Bank of America, and speeches by Federal Reserve officials Waller and Bostic.

In the European trading today, the euro rose to a 6-day high of 1.1646 against the U.S. dollar, from an early low of 1.1602. The euro may test resistance around the 1.18 region.

Against the pound, the Swiss franc and the yen, the euro advanced to 0.8721, 0.9311 and 176.22 from early lows of 0.8696, 0.9294 and 175.45, respectively. If the euro extends its uptrend, it is likely to find resistance around 0.88 against the pound, 0.94 against the franc and 178.00 against the yen.

Looking ahead, U.S. MBA mortgage approvals data, Canada manufacturing and wholesale sales data for August, U.S. New York Empire state manufacturing index for October and U.S. Fed Beige book report is slated for release in the New York session.

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