Euro, Pound Climb On Soaring Oil Prices

(RTTNews) - The euro and the pound appreciated against their major counterparts in the European session on Monday, as a surprise decision by major oil producers to cut oil production sparked a rally in oil prices.

Oil prices jumped after Saudi Arabia and other major oil producers said they will cut production by 1.15 million barrels per day from May until the end of the year.

The OPEC said the production cut was a "precautionary" move aimed at supporting the stability of the oil market.

The surge in oil prices overshadowed optimism over a slowdown in the Federal Reserve's preferred measure of core inflation in February.

Brent crude oil recorded a jump of over 6%, rising $4.91 to $84.8 per barrel.

The euro rose to 144.88 against the yen, 1.0871 against the greenback and 0.9955 against the franc, from an early 4-day low of 143.62, 1-week low of 1.0788 and a 6-day low of 0.9903, respectively. The euro may find resistance around 149.00 against the yen, 1.10 against the greenback and 1.05 against the franc.

The euro climbed to 1.4649 against the loonie and 1.7399 against the kiwi, off an early more than 2-week low of 1.4578 and a 5-day low of 1.7299, respectively. Next near term resistance for the currency is likely seen around 1.48 against the loonie and 1.76 against the kiwi.

In contrast, the euro fell sharply against the aussie, touching nearly a 2-week low of 1.6078. If the euro weakens further, 1.59 is possibly seen as its next support level.

The pound edged up to 1.2371 against the greenback and 164.85 against the yen, reversing from its previous 1-week low of 1.2274 and a 4-day low of 163.42, respectively. The currency is seen facing resistance around 1.27 against the greenback and 168.00 against the yen.

The pound advanced to 0.8779 against the euro and 1.1339 against the franc, up from an early low of 0.8806 and a 6-day low of 1.1253, respectively. The currency is poised to find resistance around 0.86 against the euro and 1.15 against the franc.

Looking ahead, U.S. ISM manufacturing PMI for March and construction spending for February are set for release in the New York session.