2018.11.2105:33:00UTC+00Euro Strengthens On Italy Optimism

The euro climbed against its major opponents in the European session on Wednesday, following a media report that Italian government is likely to make compromise with the European Union on certain aspects of its budget.

Investors heaved a sigh of relief after newspaper La Stampa reported that Italian Deputy Premier Matteo Salvini might be open to budget revisions.

The report said that Salvini was willing to reduce the planned spending on a citizen's income and the unwinding of a previous pension reform.

The European Commission is due to publish its assessment of Italy's draft budgetary plans later in the day.

The currency has been trading in a positive territory against its key counterparts in the Asian session.

The euro advanced to 0.8912 against the pound, from a low of 0.8883 hit at 5:30 pm ET. If the euro rises further, 0.91 is seen as its next resistance level.

The single currency appreciated to 128.80 against the yen and 1.1410 against the greenback, from its early lows of 128.12 and 1.1366, respectively. The euro is likely to find resistance around 130.00 against the yen and 1.15 against the greenback.

Having dropped to 1.1308 against the franc at 5:15 pm ET, the euro reversed direction and rose to 1.1339. The next possible resistance for the euro is seen around the 1.16 mark.

The euro spiked up to 1.5158 against the loonie, its highest since September 28. On the upside, 1.53 is possibly seen as the next resistance level for the euro.

On the flip side, the common currency retreated to 1.6679 against the kiwi and 1.5715 against the aussie, from its early 2-day high of 1.6760 and a 2-week high of 1.5781, respectively. The euro is seen finding support around 1.65 against the kiwi and 1.56 against the aussie.

Looking ahead, Canada wholesale sales for September, U.S. weekly jobless claims for the week ended November 17, University of Michigan's final consumer sentiment index for November, durable goods orders, existing home sales and leading index for October are set for release in the New York session.