Euro Advances Amid Risk Appetite

(RTTNews) - The euro was higher against its major counterparts in the European session on Monday amid risk appetite, as China announced new measures to revive its capital markets and boost investor confidence.

China approved the launch of 37 retail funds over the weekend and also halved the stamp duty on stock trading in the latest attempt to boost struggling markets.

The new measures to woo investors came as data showed China's industrial profits extended a slump into a seventh month.

Investors await a slew of key economic data, including the personal consumption expenditures price index and non-farm payrolls, for more clues on interest rate outlook.

Futures imply around an 80 percent chance of a steady outcome at the Sept. 20 meeting, but a 58 percent probability of a hike by year end.

The euro rose to 1.0822 against the greenback and 1.6883 against the aussie, from its early lows of 1.0792 and 1.6783, respectively. The currency is seen facing resistance around 1.10 against the greenback and 1.70 against the aussie.

The euro climbed to near a 2-week high of 0.8598 against the pound and a 6-day high of 158.56 against the yen, off its early lows of 0.8566 and 157.96, respectively. Next key resistance for the currency may be located around 0.88 against the pound and 160.00 against the yen.

The euro touched 1.8335 against the kiwi, setting a 6-day high. On the upside, 1.85 is possibly seen as its next resistance level.

Against the loonie, the euro ticked up to 1.4717. If the currency rises further, 1.49 is likely seen as its next upside target level.

The euro rebounded to 0.9558 against the franc, after falling to a 4-day low of 0.9533 in the previous session. The currency may challenge resistance around the 0.98 level.