Euro Higher As Eurozone Factory Activity Improves To Record High

The euro gained ground against its most major counterparts in the European session on Monday, as investors bet on a speedy economic recovery after data showed that Eurozone manufacturing PMI rose in April at the fastest pace since the survey began in 1997.

Final data from IHS Markit showed that the manufacturing PMI rose to 62.9 in April from 62.5 in March. The flash score was 63.3.

It was also the tenth successive month that the index has rose above the 50.0 mark.

Growth rates for both manufacturing output and new orders remained close to March’s survey records as firms reported rising market confidence.

German retail sales data for March beat forecasts, signaling ongoing rebound.

German retail sales grew by a real 7.7 percent on a monthly basis in March, Destatis reported. That was faster than the 2.7 percent increase in February and 3 percent rise economists had forecast.

On a yearly basis, retail sales rebounded 11 percent, reversing a 6.6 percent fall in the previous month and confounding expectations for a decrease of 0.3 percent

The currency was further underpinned by risk appetite, as investors became optimistic at the start of a week packed with central bank meetings and top-tier economic data.

The euro edged higher to 132.16 against the yen, up from Friday’s close of 131.38. The euro is seen finding resistance around the 133.00 area.

The euro rose to 1.2056 against the greenback, from its Asian session’s 10-day low of 1.2013. The euro is poised to find resistance around the 1.22 level.

The euro gained to 1.0999 against the franc, after touching more than a 2-month low of 1.0959 in the previous session. The next likely resistance for the euro is seen around the 1.13 level.

The European currency was up against the aussie and the loonie, at 1.5610 and 1.4841, respectively. Immediate resistance for the euro is seen around 1.58 against the aussie and 1.50 versus the loonie.

The euro approached 1.6833 against the kiwi, its biggest level since April 14. On the upside, 1.72 is possibly seen as its next resistance level.

On the other hand, the euro eased off to 0.8690 against the pound, from a high of 0.8710 seen at 3:00 am ET. If the euro falls further, 0.84 is likely seen as its next support level.

Looking ahead, U.S. ISM manufacturing PMI for April and construction spending for March are set for release in the New York session.

The material has been provided by InstaForex Company –