Euro Advances As Italy Imposes Cap On Windfall Tax On Banks
(RTTNews) - The euro climbed against its major counterparts in the European session on Wednesday, as Italy's decision to set a cap on its windfall tax on banks lifted European shares.
The Italian government clarified that the windfall tax would be capped at 0.1 percent of a bank's assets.
The announcement came a day after the approval of the 40 percent windfall tax on banks' extra profits, which sent European banking shares plunging.
Investors also awaited U.S. consumer and wholesale inflation data due this week for clues on future rate hikes.
Economists expect Thursday's data to show U.S. consumer prices rose by an annual 3.3 percent in July, up from 3 percent in the previous month.
The euro advanced to 1.0988 against the greenback, 157.52 against the yen and 1.8116 against the kiwi, off its early lows of 1.0949, 156.91 and 1.8010, respectively. The currency is seen facing resistance around 1.12 against the greenback, 159.00 against the yen and 1.84 against the kiwi.
The euro edged up to 1.4741 against the loonie and 1.6787 against the aussie, from its early 2-day lows of 1.4692 and 1.6704, respectively. The currency may challenge resistance around 1.49 against the loonie and 1.70 against the aussie.
The euro recovered to 0.8624 against the pound, reversing from an early 1-week low of 0.8589. On the upside, 0.88 is seen as its next resistance level.
The euro appreciated to a 2-day high of 0.9627 against the franc, up from an early 5-day low of 0.9581. Next near term resistance for the currency is likely seen around the 0.98 level.
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