Euro Rises Amid Expectations Of Stronger Second Quarter Growth

10/08/2015 10:44 AST

The euro continued to be strong against the other major currencies in the Asian session on Monday, as traders expect the euro area GDP to grow in the second quarter. The data due this week.

Eurostat is set to publish the preliminary second-quarter GDP data for Eurozone this Friday. Economists expect the gross domestic product to expand 1.3% year- on-year, up from 1% in the previous quarter. The economy grew by 0.4% in the first quarter of 2015, compared to the previous quarter. The European Commission predicts a growth of 1.5% in 2015.

Greece's finance and economy ministers finalized to conclude the negotiations with its international creditors on Tuesday and a draft for the bailout was designed to avoid the country from financial ruin. The Greek officials hope the bailout agreement to be approved by the country's parliament on August 18.

Friday, the euro rose 0.73% against the pound, 0.33% against the US dollar, 0.64% against the Swiss franc and 0.17% against the yen.

In the Asian trading today, the euro rose to a 6-day high of 1.4422 against the Canadian dollar, from Friday's closing value of 1.4399. The euro may test resistance near the 1.45 region.

The euro advanced to 0.7083 against the pound, 1.0788 against the Swiss franc and 136.39 against the yen, from last week's closing quotes of 0.7073, 1.0775 and 136.13, respectively. If the euro extends its uptrend, it is likely to find resistance around against the loonie, 0.71 against the pound, 1.08 against the franc and 137.00 against the yen.

Against the US, the Australia and the New Zealand dollars, the euro edged up to 1.0973, 1.4827 and 1.6599 from Friday's closing quotes of 1.0962, 1.4775 and 1.6543, respectively. On the upside, 1.11 against the greenback, 1.52 against the aussie and 1.68 against the kiwi are seen as the next resistance levels for the euro.

Looking ahead, Eurozone Sentix investor confidence index for August is due to be released at 4:30 am ET.

In the New York session, US labor market conditions index for July is slated for release.

Federal Reserve Bank of Atlanta is scheduled to host the "Developing Qualified Workers: Pathways to Employability for High School Students and Graduates" forum and Atlanta Fed President Dennis Lockhart is due to give welcome remarks. Subsequently, Lockhart is also expected to speak before the Atlanta Press Club in the US at 12:25 pm ET.

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