2023.02.2811:12:00UTC+00Euro Appreciates Amid Hot Inflation Data

The euro climbed against its most major rivals in the European session on Tuesday, as inflation figures from France and Spain came in hotter than expected for February.

The inflation rate in France rose to 7.2 percent in February year-on-year, up from 7.0 percent in January as a result of rising food prices, preliminary data showed.

Spanish consumer price inflation increased an annual 6.1 percent in February, accelerating from 5.9 percent during the 12 months to January.

Christine Lagarde, President of the European Central Bank, said in an interview that the central bank is data dependent and will decide on rate hikes later after a 50 basis points hike in March.

The euro rose to a 5-day high of 1.0626 against the greenback and a fresh 3-week high of 0.9961 against the franc, from its prior lows of 1.0581 and 0.9915, respectively. The currency may find resistance around 1.08 against the greenback and 1.01 against the franc.

The euro firmed to more than a 2-month high of 145.21 against the yen and a 2-month high of 1.5815 against the aussie, from its early lows of 144.17 and 1.5695, respectively. The euro is seen facing resistance around 147.00 against the yen and 1.61 against the aussie.

The euro advanced to a 4-month high of 1.7288 against the kiwi and a 6-day high of 1.4435 against the loonie, up from its prior lows of 1.7171 and 1.4373, respectively. Next immediate resistance for the currency is seen around 1.74 against the kiwi and 1.46 against the loonie.

In contrast, the euro fell to 0.8768 against the pound, its lowest level since January 30. If the currency slides further, 0.84 is likely seen as its next support level.

Looking ahead, Canada GDP data for the fourth quarter as well as U.S. consumer confidence index for February and FHFA's house price index and S&P/Case-Shiller home price index for December and wholesale inventories and advance goods trade balance for January are set for release in the New York session.