Euro advances in European session

By @ibtimes on

Euro continued rise after German report which showed that German factory orders retreated to 2.4% in February from the revised 3.1% in January, yet above forecasts of 0.5%. On the year, the report rose to 20.1% from the revised 16.5%.

The European common currency is showing advance before the ECB rate decision tomorrow which is expected to show an interest rate hike by 25 basis points.

An interest rate rise is expected to give further boost to the euro, where Trichet referred last month that raising interest rate is possible to hat the rapid acceleration in prices that took inflation to 2.6%, according to the CPI estimate.

Other data from the euro zone showed that euro area 4q GDP remained unrevised at 0.3% on the quarter and 2.0% on the year.

Concerning the euro-dollar pair, it rose to trade at 1.4295 after recording a high of 1.4316 and a low of 1.4206, whereas the trading range for this week is among the key support at 1.4000 and the key resistance at 1.4500.

Moving to the British pound versus the dollar, it retreated to trade near he day's opening level of 1.6290 after reaching a high of 1.6362 and a low of 1.6265 after the drop in manufacturing and industrial production for February.

The trading range for this week is among the key support at 1.5870 and the key resistance at 1.6500.

With regard to the dollar-yen pair, it continued its advance on the daily charts amid the weakness of the yen which is pushing the pair higher as expectations increase that the BoJ will not raise interest rate as expected by other central banks, ahead of the release of US initial jobless claims which is expected to drop to 385 thousands last week from 388 thousands a week befor.

The pair is trading at 85.11 meanwhile after reaching a high of 85.52 and a low of 84.82, while the trading range for this week is among the key support at 82.35 and the key resistance at 86.30.

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