Euro Recovers As European Shares Edge Up Before Powell's Speech

(RTTNews) - The euro rebounded against its most major counterparts in the European session on Friday, as European stocks rose after the release of some encouraging regional data.

Destatis reported that the German economy stabilized in spring after slight declines in the previous two quarters.

Gross domestic product posted nil growth in the second quarter after a 0.1 percent fall in the first quarter and a 0.4 percent decline in the fourth quarter of 2022.

Investors focus on Fed Chair Jerome Powell's speech at the Jackson Hole Symposium later in the day for clues on U.S. interest rates.

It is likely that Powell could signal the likelihood of high interest rates for longer to curb inflation.

The euro edged up to 1.0816 against the greenback and 1.4698 against the loonie, from an early multi-month low of 1.0765 and a multi-week low of 1.4628, respectively. The currency is seen facing resistance around 1.10 against the greenback and 1.48 against the loonie.

The euro touched 0.9569 against the franc, setting a 3-day high. On the upside, 0.98 is possibly seen as its next resistance level.

The euro rebounded modestly against the aussie and was trading at 1.6827. Against the yen, it ticked up to 157.83. Next key resistance for the currency may be located around 1.70 against the aussie and 159.00 against the yen.

The euro held steady against the kiwi, after easing from a 3-day high of 1.8295 seen in the previous session. The pair was worth 1.8247 at yesterday's close.

After rising to a 9-day high of 0.8585 in the previous session, the euro retreated against the pound and held steady thereafter. The pair had closed yesterday's deals at 0.8578.

Looking ahead, University of Michigan's final consumer sentiment index for August will be featured in the New York session.