Euro Up As Draghi Says Eurozone On Path Of Recovery By Second Half Of 2013

04:41, 30th November 2012

(RTTNews) - The European currency advanced on Friday following the European Central Bank President Mario Draghi's comments that the Eurozone is on track to attain recovery by the second half of 2013.

While speaking at Paris, Draghi noted that the short term economic impact due to budgetary consolidation in Eurozone is unavoidable and the bloc will experience positive signs in the second half of next year.

Draghi also addressed urgent need of implementing the banking union to preserve the sector.

Data from the Federal Statistical Office showed that retail sales in Germany declined more than expected in October.

Retail sales fell 2.8 percent month-on-month on a calendar and seasonally adjusted basis in October. This was expected to fall 0.4 percent. In September, sales were up 0.5 percent.

Sales dropped 0.8 percent annually compared to expectations for a 0.3 percent fall.

The euro climbed to a 3-day high of 1.2049 against the franc with 1.21 seen as the next upside target level. The euro-franc pair closed yesterday's deals at 1.2039.

An indicator of Swiss economic activity decreased for a second consecutive month in November, suggesting that the economy may lose momentum going forward.

The KOF Institute said that its economic barometer declined to 1.5 in November from a revised 1.64 in October. Economists expected the reading to be 1.6.

Against the pound, the euro added 0.3 percent and reached a 5-week high of 0.8117. This may be compared to Thursday's close of 0.8093. On the upside, 0.815 is seen as the next target level for the euro.

The European single currency spiked up to 1.3029 against the greenback, its highest level since October 23. If the euro advances further, it may target 1.31 level. The pair closed yesterday's deals at 1.2980.

The euro added 1 percent against the yen to hit more than a 7-month high of 107.65. The next resistance level for the euro-yen pair is seen at 108.00. At yesterday's close, the pair was worth 106.60.

The cabinet of Japanese Prime Minister Yoshihiko Noda today approved a second round of economic stimulus in an attempt to jump start the economy ahead of the elections in December.

The new package, worth JPY 880 billion ($10.7 billion), is funded from the country's budget reserves, avoiding further debt sales. The package is more than double the size of the stimulus measures announced in October.

The euro touched more than a 4-week high of 1.2933 against the Canadian dollar, up from Thursday's close of 1.2883. If the euro extends advance, it may break 1.30 level.

Against the NZ counterpart, the euro climbed to 1.5853 for the first time since October 25. The euro is likely to seek next upside target level at 1.59. The euro-kiwi pair finished Thursday's trading at 1.5781.

The euro approached a fresh 4-week high of 1.2493 against the aussie from yesterday's New York session close of 1.2444. On the upside, the euro is likely to break 1.26 level.

The Eurozone jobless rate for October and consumer price index for November are expected shortly.

Canada third quarter GDP, the U.S. personal income and spending data for October and the Chicago PMI for November are due in the North American session.