Euro Climbs Amid Risk Appetite

The euro advanced against its major counterparts in the European session on Tuesday amid risk appetite, as fears over a banking crisis eased, and investors awaited the Federal Reserve's interest-rate decision.

The Fed kicks off its two-day meeting today, with markets expecting a 25-bps rate hike on Wednesday.

The focus will be on Fed Chair Jerome Powell's forward guidance and dot-plot projections, especially in light of the recent banking turmoil.

UBS' state-backed acquisition of Credit Suisse eased some of the concerns about a global banking crisis and triggered demand for riskier assets.

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

Data from Eurostat showed that Eurozone construction output rebounded sharply in January and at the fastest pace in nearly two years amid robust growth in both building construction and civil engineering.

Construction output rose 3.9 percent month-on-month in January, reversing a 2.3 percent fall in the previous month.

The euro appreciated to a 5-week high of 1.0780 against the greenback, 6-day high of 142.55 against the yen and an 8-day high of 1.7398 against the kiwi, from its early lows of 1.0703, 140.41 and 1.7134, respectively. The euro may locate resistance around 1.11 against the greenback, 145.00 against the yen and 1.76 against the kiwi.

The euro firmed to a 5-day high of 0.8796 against the pound and near a 3-week high of 0.9978 against the franc, off its early lows of 0.8725 and 0.9942, respectively. The next possible resistance for the euro is seen near 0.90 against the pound and 1.05 against the franc.

The euro jumped to 1-week highs of 1.4724 against the loonie and 1.6132 against the aussie, following its prior lows of 1.4638 and 1.5940, respectively. Next immediate resistance for the euro is seen around 1.51 against the loonie and 1.65 against the aussie.

U.S. existing home sales for February are scheduled for release in the New York session.