Forex News: Euro Rises As European Shares Advance

Euro Rises As European Shares Advance

(RTTNews) - The European currencies strengthened against other major currencies in the European session on Friday after European stock markets traded higher, as robust U.S. economic data and encouraging tech earnings helped ease tariff-related concerns for now.

Taiwan Semiconductor Manufacturing, the world's largest contract chipmaker, posted record quarterly profit on AI demand and Netflix reported earnings that beat expectations on both the top and bottom lines.

The U.S. streaming giant also raised its full-year revenue and operating margin guidance, continuing a strong run that has propelled its shares to new highs.

The White House said President Donald Trump remains in "excellent health." Trump's health was under scrutiny after reports of leg swelling and hand bruising in recent weeks.

The EUR/USD pair gains value while the U.S. dollar declines, as risk sentiment eases in the wake of the Federal Reserve members' dovish comments.

Federal Reserve Governor Christopher Waller said the U.S. central bank should cut interest rates this month to support a labor market that is showing signs of weakness.

Fed Bank of San Francisco President Mary Daly reiterated that it's reasonable to expect two interest rate cuts before the end of the year.

Fed Governor Adriana Kugler said it's appropriate to keep rates steady "for some time," as tariffs start to boost prices.

In the European trading today, the euro rose to a 9-day high of 0.9341 against the Swiss franc and a 2-day high of 173.11 against the yen, from early lows of 0.9326 and 172.35, respectively. If the euro extends its uptrend, it is likely to find resistance around 0.94 against the franc and 174.00 against the yen.

Against the U.S. and the Canadian dollars, the euro advanced to 2-day highs of 1.1648 and 1.5983 from early lows of 1.1612 and 1.5954, respectively. On the upside, 1.17 against the greenback and 1.61 against the loonie are seen as the next resistance levels for the euro.

The euro edged up to 0.8665 against the pound, from an early low of 0.8648. The next possible upside target for the euro is seen around the 0.87 region.

Looking ahead, U.S. building permits and housing starts for June, U.S. University of Michigan's consumer sentiment index for July and U.S. Baker Hughes oil rig count data are slated for release in the New York session.

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