Euro Climbs Ahead Of ECB Decision

The euro strengthened against its most major counterparts in the European session on Thursday, ahead of the monetary policy decision from the European Central Bank, with analysts expecting an extension of monthly bond buying program to support crumbling Eurozone amid Italy turmoil and Brexit.

The 25-member Governing Council is widely expected to leave interest rates unchanged for a sixth straight session, keeping main refi rate at a record low of zero percent, the deposit rate at -0.40 percent, and the marginal lending facility rate at 0.25 percent.

The central bank is expected to extend asset purchases of 80 billion euros a month by six months till September.

The announcement, due at 7:45 am ET, will be followed by ECB President Mario Draghi's customary press conference at 8.30 am ET in Frankfurt.

Draghi is also set to release the new set of ECB Staff macroeconomic projections on growth and inflation.

The currency showed mixed performance in the Asian session. While the euro held steady against the franc and the pound, it rose against the greenback. Against the yen, it declined.

The euro strengthened to 1.0805 against the greenback, its highest since November 15. The euro is likely to find resistance around the 1.11 region.

The single currency reversed from an early 2-day low of 121.99 against the Japanese yen, climbing to a 2-day high of 122.69. The next possible resistance for the euro-yen pair is seen around the 126.00 mark.

Survey figures from the Cabinet Office showed that a measure of peoples' assessment of the Japanese economy increased unexpectedly in November to the strongest level in almost one year.

The current index of Economy Watchers' survey climbed to 48.6 n November from 46.2 in the previous month. Meanwhile, economists had expected the index to fall to 45.5.

The common currency advanced to more than a 5-week high of 1.0856 against the Swiss franc, compared to Wednesday's closing value of 1.0832. On the upside, 1.12 is possibly seen as the next resistance for the euro-franc pair.

The euro bounced off to 1.4418 against the aussie, 1.4282 against the loonie and 1.4995 against the kiwi, from its early lows of 1.4344 and 1.4219, and a 3-day low of 1.4909, respectively. Further uptrend may take the euro to resistance levels of around 1.46 against the aussie, 1.45 against the loonie and 1.52 against the kiwi.

On the flip side, the 19-nation currency pared gains to 0.8498 against the pound, from a high of 0.8534 hit at 3:00 am ET. If the euro-pound pair extends decline, it may find support around the 0.83 level.

The Report on Jobs compiled by the Recruitment and Employment Confederation and IHS Markit showed that U.K. permanent job placements grew at the fastest pace in nine months in November.

The number of people placed in permanent jobs rose again in November, with the rate of growth quickening to its sharpest since February.

Looking ahead, Canada housing starts for November, building permits and house price index, for October and U.S. weekly jobless claims for the week ended December 3, are due to be released in the New York session.

Later in the day, Bank of Canada Governor Stephen Poloz, Canada Minister of Finance Bill Morneau and Minister of Status of Women Patty Hajdu are scheduled to attend an event in Gatineau, Quebec, Canada.