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2021.11.2514:02:00UTC+00Euro Higher After ECB Minutes

The euro was higher against its most major counterparts in the European session on Thursday, as the European Central Bank's minutes from the latest meeting showed that the Governing Council is prepared to make a decision at the December meeting regarding an end to net purchases under the pandemic emergency purchase programme by March 2022.

"With regard to the upcoming Governing Council meeting in December, the view was held that, judging on the basis of the current developments, net purchases under the PEPP could be expected to come to an end by March 2022, in line with the date that the Governing Council had announced in its previous communication," the minutes from the bank's October 27 and 28 meeting showed.

ECB policymakers agreed that price pressures were more persistent than had been estimated in the September ECB staff projections.

Members stressed that the current outlook clearly lacked the stagnation element. Although the growth momentum was declining, it was within a still strong recovery and with robust rates of growth in activity.

Members widely agreed that the effects of higher energy prices and supply bottlenecks would be temporary, but the decline in inflation in 2022 would take longer than previously expected.

The policymakers emphasized that the uncertainty around the medium-term inflation prospects was seen as elevated.

"While an increase in the upside risks to inflation had to be acknowledged, it was deemed important for the Governing Council to avoid an overreaction as well as unwarranted inaction, and to keep sufficient optionality in calibrating its monetary policy measures to address all inflation scenarios that might unfold," the minutes added.

Revised data from Destatis showed that the German economy expanded slightly less than estimated in the third quarter.

Gross domestic product grew 1.7 percent sequentially in the third quarter, instead of 1.8 percent estimated on October 29.

The euro gained against its major counterparts in the Asian session, except the pound.

The euro touched an 8-day high of 0.8436 against the pound, up from yesterday's close of 0.8402. The euro may test resistance around the 0.86 region, if it gains again.

The euro edged up to 1.1230 against the greenback and 1.4229 against the loonie, from Wednesday's closing values of 1.1198 and 1.4177, respectively. The euro is seen locating resistance around 1.15 against the greenback and 1.44 against the loonie.

The euro climbed to a 6-day high of 1.5631 against the aussie and more than a 5-week high of 1.6396 against the kiwi, compared to Wednesday's closing quotes of 1.5553 and 1.6279, respectively. The euro is likely to target resistance around 1.58 against the aussie and 1.66 against the kiwi.

The European currency rose to 1.0485 against the franc, from a 3-day low of 1.0452 seen at 5:15 pm ET. At Wednesday's close, the pair was valued at 1.0457. The next likely resistance for the euro is seen around the 1.065 level.

In contrast, the euro pulled back against the yen, with the pair trading at 129.34. The pair was worth 129.25 when it ended deals on Wednesday. The euro may locate support around the 128.00 level.

Final data from the Cabinet Office showed that Japan's leading index decreased less than estimated in September.

The leading index, which measures the future economic activity, fell to 100.9 in September from 101.3 in August. In the initial estimate, the reading was 99.7.



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