CANBERA (dpa-AFX) - The euro climbed against its major counterparts in the European session on Tuesday amid risk appetite, following a report that the European Union is planning to jointly issue bonds to fund energy and defense spending amid the crisis in Ukraine.
The proposal is expected to be presented next week, after an emergency summit of the EU in France due later this week.
The report stated that EU officials are preparing the details of the plan, which would help fund spending through the debt sales.
Russia's Deputy Prime Minister Alexander Novak warned on Monday that Moscow could impose a ban on gas pumping through the Nord Stream 1 gas pipeline to retaliate against sanctions imposed by the West.
Meanwhile, the U.S. is planning to impose a ban on Russian oil imports without teaming up with its allies in Europe, although a final decision has not been made yet.
The euro appreciated to 1.0922 against the greenback, from a low of 1.0849 seen at 5 pm ET. If the euro rises further, 1.12 is possibly seen as its next resistance level.
After falling to 0.8275 at 5:15 pm ET, the euro firmed to a 6-day high of 0.8325 against the pound. Next key resistance for the euro is seen around the 0.86 level.
Reversing from its early lows of 1.0038 against the franc and 125.05 against the yen, the euro climbed to 4-day highs of 1.0114 and 126.21, respectively. The euro is seen finding resistance around 1.10 against the franc and 128.00 against the yen.
The euro touched 4-day highs of 1.4995 against the aussie, 1.6007 against the kiwi and 1.4001 against the loonie, up from its prior lows of 1.4791, 1.5858 and 1.3899, respectively. The euro is likely to challenge resistance around 1.53 against the aussie, 1.62 against the kiwi and 1.44 against the loonie.
Looking ahead, U.S. and Canadian trade data and U.S. wholesale inventories for January will be featured in the New York session.
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