CANBERA (dpa-AFX) - The euro and the pound advanced against their key counterparts in European deals on Tuesday, as European stocks climbed following a report that some Russian troops near Ukraine have started returning to bases.
Military units from the Southern and Western districts of Russia are returning to permanent bases after completing the exercises, the Interfax news agency reported, quoting Russian Defense Ministry spokesman Igor Konashenkov as saying.
The move helped ease worries about an imminent invasion of Ukraine, fueling a sharp rebound in stocks.
German chancellor Olaf Scholz is set to hold talks with Russian President Vladimir Putin to find a diplomatic solution to the crisis.
Survey results from the ZEW - Leibniz Centre for European Economic Research showed that German economic confidence strengthened in February despite rising economic and political uncertainties.
The ZEW Indicator of Economic Sentiment climbed 2.6 points to a seven-month high of 54.3 points in February from 51.7 in January. However, this was below the economists' forecast of 55.0.
The euro reversed from its prior lows of 130.43 against the yen and 1.1296 against the greenback, climbing to 131.25 and 1.1354, respectively. The next possible resistance for the euro is seen around 133.00 against the yen and 1.16 against the greenback.
Rebounding from its earlier lows of 1.0440 against the franc and 0.8347 against the pound, the euro edged higher to 1.0512 and 0.8375, respectively. The euro is seen finding resistance around 1.07 against the franc and 0.86 against the pound.
The euro reached as high as 1.7137 against the kiwi, up from a low of 1.7052 seen at 3 am ET. Next key resistance for the currency is likely seen near the 1.74 level.
The euro remained higher against the loonie, with the pair trading at 1.4422. On the upside, 1.46 is possibly seen as its next resistance level.
In contrast, the euro pulled back to 1.5846 against the aussie, from its previous session's high of 1.5933. If the currency falls further, it may challenge support around the 1.56 level.
The pound firmed to a 4-day high of 1.2558 against the franc, after a drop to 1.2490 at 5 pm ET. The pound may locate resistance near the 1.28 level.
The pound climbed to 156.82 against the yen and 1.3567 against the greenback, up from its previous lows of 155.97 and 1.3519, respectively. The pound is likely to find resistance around 160.00 against the yen and 1.37 against the greenback.
Looking ahead, Canada housing starts for January are scheduled for release at 8:15 am ET.
U.S. PPI for January and New York Fed's empire manufacturing survey for February are set to be released in the New York session.
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