2010.10.0606:45:00UTC+00Euro Mixed Against Majors

In early European deals on Wednesday, the euro showed mixed trading against other major currencies. While the euro soared to a new 8-month high against the dollar and a 2-day high against the pound, it eased from a 2-day high against the franc. On the other hand, the euro showed choppy trading versus the yen.

European stocks rose in early trade, tracking gains in Asia and on Wall Street, buoyed by hopes of further quantitative easing by the U.S. Federal Reserve at its November policy meeting following the Bank of Japan's surprise move yesterday to reinstate zero interest rates and provide stimulus to the economy.

Germany's DAX climbed 1.1% thus far, France's CAC 40 index soared 1.2% and U.K.'s FTSE 100 index gained 1%.

Euro area gross domestic product grew 1% in the second quarter on a sequential basis, according to second estimates from Eurostat. This follows a 0.3% rise in the first quarter.

Annually, economic growth was 1.9%, much faster than the 0.8% growth recorded in the previous quarter. The second quarter growth figures matched the estimate published on September 2.

The euro jumped to a new 8-month high of 1.3874 against the dollar at 3:35 am ET Wednesday. Since then, the euro-dollar pair has been moving sideways and is currently worth 1.3865, compared to yesterday's close of 1.3839. If the euro gains further, it may likely target the 1.400 level.

After hitting a 2-day high of 1.3418 against the franc at 2:35 am ET Wednesday, the euro eased. At present, the euro-franc pair is trading near yesterday's close of 1.3373. The next downside target level for the euro is seen at 1.327.

At 3:40 am ET, the euro strengthened to a 2-day high of 0.8726 against the pound. The euro-pound pair that closed yesterday's trading at 0.8711 is now worth 0.8721. On the upside, 0.874 is seen as the next target level for the European currency.

The euro showed choppy trading against the yen in early European deals on Wednesday. The euro-yen pair bounced between 115.0 and 115.3. The pair closed yesterday's trading at 115.19.

Looking ahead, the German factory orders for August is expected at 6:00 am ET.

The U.S. ADP employment report for September has been slated for release in the New York session.

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