2023.10.1612:55:00UTC+00Euro Firms Against Majors

The euro climbed against its major counterparts in the European session on Monday, as investors awaited corporate earnings and economic data that could influence the Federal Reserve's monetary policy.

Major economic reports due this week include retail sales, industrial production, housing starts and existing home sales.

Investors focus on a speech by Federal Reserve Chair Jerome Powell on Thursday for clues on the interest rate outlook.

European government bond yields rose after ECB officials reiterated concerns about inflation.

On the economic front, data from Destatis showed Germany's wholesale prices declined at the fastest pace in more than three years in September.

Wholesale prices posted an annual fall of 4.1 percent in September largely due to a base effect originating from the large price increases in 2022 as a result of the war in Ukraine.

The euro edged up to 1.0542 against the greenback and 0.9522 against the franc, off its early lows of 1.0508 and 0.9466, respectively. The euro is seen finding resistance around 1.07 against the greenback and 0.98 against the franc.

The euro touched 0.8671 against the pound, its highest level since October 5. The euro is seen testing resistance around the 0.88 level.

The euro advanced to 157.61 against the yen, up from an early 6-day low of 156.98. On the upside, 164.00 is seen as its next resistance level.

The euro recovered to 1.7815 against the kiwi and 1.6670 against the aussie, from an early low of 1.7750 and a 4-day low of 1.6633, respectively. The euro may find resistance around 1.81 against the kiwi and 1.69 against the aussie.

In contrast, the euro pulled back against the loonie and was trading at 1.4356. If the euro continues its fall, 1.41 is possibly seen as its next support level.