Euro Climbs On Hot German Producer Inflation Data

The euro advanced against its most major counterparts in the European session on Thursday, as German producer inflation rose more than expected in September amid soaring energy prices.

Data from Destatis showed that producer prices surged 45.8 percent year-over-year in September, the same rate of increase as in August. The rate was forecast to ease to 44.7 percent.

On a monthly basis, producer prices increased 2.3 percent in September, after a 7.9 percent gain in the previous month. Prices were expected to increase by 1.3 percent.

Markets expect a second consecutive interest rate hike of 75 basis points from the European Central Bank when it meets next week.

German bond yields rose, with the yield on the 10-year Bund touching 2.421 percent.

The EUR/CHF pair touched 0.9847, its strongest level since September 2. The euro is likely to test resistance around the 1.05 level.

The euro rebounded to 0.9795 against the greenback, from a 3-day low of 0.9754 seen in the previous session. The euro may possibly challenge resistance around the 1.08 region.

The euro was up against the pound, at a 1-week high of 0.8757. Next key resistance for the euro is seen around the 0.90 mark.

In contrast, the euro eased against the loonie, hitting a 3-day low of 1.3438. On the downside, 1.30 is seen as the next likely support for the currency.

The euro retreated to 1.7228 against the kiwi and 1.5548 against the aussie, from its early 2-day highs of 1.7352 and 1.5669, respectively. The euro is seen finding support around 1.66 against the kiwi and 1.49 against the aussie.

The euro eased modestly against the yen, with the pair trading at 146.60. The next likely support for the currency is seen around the 132.00 level.

Looking ahead, U.S. weekly jobless claims for the week ended October 15, existing home sales and monthly budget statement for September are scheduled for release in the New York session.