Euro Rises As Report Says ECB Policymakers Unlikely To Rush Into July Rate Cut

The euro advanced against its major counterparts in the European session on Tuesday, after a media report showed that policymakers at the European Central Bank are in no hurry to cut rates at the meeting this month.

ECB policymakers see no need to rush into July rate cut, Bloomberg reported, citing officials.

However, policymakers are likely to change its language to signal additional stimulus forthcoming sooner rather than later.

Data from Eurostat showed that Eurozone producer price inflation slowed for the third consecutive month in May.

The industrial producer price index rose 1.6 percent year-on-year in May following a 2.6 percent rise in April. Economists had expected a 1.8 percent rise.

Data from Destatis showed that Germany's retail sales grew at a slower rate in May.

Retail sales climbed 4.0 percent year-on-year in May, after a 4.6 percent increase in April. Economists had forecast a 2.7 percent rise.

The currency trended lower against its major counterparts in the Asian session.

The euro appreciated to 0.8968 against the pound, 1.1322 against the greenback and 122.53 against the yen, from its early weekly low of 0.8920, near 2-week low of 1.1275 and a 6-day low of 122.16, respectively. The next possible resistance for the euro is seen around 0.91 against the pound, 1.15 against the greenback and 125.00 against the yen.

The euro strengthened to near a 2-week high of 1.1169 against the franc and a 4-day high of 1.6987 against the kiwi, off its early lows of 1.1131 and 1.6885, respectively. On the upside, 1.13 and 1.73 are likely seen as the next resistance levels for the euro against the franc and the kiwi, respectively.

The European currency edged higher to 1.4854 against the loonie, reversing from more than an 8-month low of 1.4803. If the euro rises further, 1.51 is seen as its next resistance level.

On the flip side, the euro held steady against the aussie, after having retreated to 1.6151 at 12:30 am ET. At yesterday's close, the pair was worth 1.6202.

Australia's central bank lowered its key interest rate by a quarter point for the second straight meeting, as widely expected.

The board of the Reserve Bank of Australia, governed by Philip Lowe, cut the cash rate to 1.00 percent from 1.25 percent. The bank had reduced its rate by 25 basis points in June.