Euro Trades Higher On Cease-fire Talks Between Ukraine, Russia

September 3, 2014

Brussels (Sept 3)  The euro traded higher against most major currencies in European deals on Wednesday, as Ukraine President Petro Poroshenko announced that an agreement on ceasefire regime in the Donbas has been reached with Russian President  Vladimir Putin  .

The statement published by the Ukrainian President's office revealed that  Ukraine  and  Russia  had agreed on a ceasefire regime in the Donbas. "The parties reached mutual understanding on the steps that will facilitate the establishment of peace," it showed.

Meanwhile, Kremlin stressed that Putin had not agreed to a ceasefire as  Russia  was not party to the conflict.

In a statement,  Vladimir Putin  said that he had a telephone conversation with Petro Poroshenko, in which they continued their discussion of the  Ukraine  crisis and exchanged views on priority steps needed to bring about a swift end to the bloodshed in  Ukraine's  southeast.

Eurozone's composite purchasing managers' index, or PMI, was revised downwards in August, final figures from Markit Economics showed.

The Markit PMI composite output index was revised to 52.5 in August, less than the flash estimate of 52.8. In July, the index was at 53.8.

The euro advanced to near a 2-week high of 0.7985 against the Sterling and held steady thereafter. The next possible resistance for the euro-pound pair pair lies around the 0.807 zone.

British service sector activity grew at the strongest pace in ten months during August amid favorable market conditions and new business growth, survey data from the  Chartered Institute of Purchasing & Supply  and Markit Economics showed.

The  Markit  /CIPS Services Purchasing Managers' Index climbed to 60.5 from 59.1 in July. Economists had forecast a score of 58.5.

The euro climbed back against the yen, reaching a 1-1/2-month high of 138.27. If the euro extends its uptrend, 139.00 is possibly seen as its next resistance level.

The services sector in  Japan  contracted in August, albeit barely, the latest survey from Markit Economics revealed on Wednesday with a purchasing managers' index score of 49.9.

That was down from 50.4 in July, and it slipped below the boom-or-bust score of 50 that separates expansion from contraction.

The euro spiked up to a 5-day high of 1.3155 against the US dollar and moved sideways thereafter. Further gains may lead the euro to a resistance around the 1.32 region.

On the flip side, the euro eased back against the Swiss franc from an early 8-day high of 1.2089. The euro is thus heading to pierce a 2-day low of 1.2064 hit at  1:15 am ET  .

Looking ahead, the US factory orders data for July and the Federal Reserve's  Beige  book report are due in the  New York  session.

The Bank of  Canada's  interest rate decision is due at  10:00 am ET  . The bank is seen keeping rates on hold at 1.00%.

Source: RTTnews

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