Euro Advances Amid Hawkish Comments From ECB Officials

The euro was higher against its most major counterparts in the European session on Friday, as market participants lowered expectations for rate cuts following comments from policymakers of the European Central Bank.

ECB governing council member Robert Holzmann remarked that the likelihood of another rate hike is no smaller than that of rate cuts.

Bundesbank President Joachim Nagel said on Thursday that the ECB must resist any temptation to cut interest rates early.

Nagel also said he was "skeptical" about the risk of a 'hard landing' for the euro zone economy caused by the monetary policy squeeze.

In economic releases, official data showed the German economy contracted slightly in the third quarter compared with the previous three months.

GDP declined 0.1 percent sequentially, confirming a first estimate, published in late October as the country languishes in a likely recession.

The euro edged up to 1.0920 against the greenback and 0.9647 against the franc, off its early lows of 1.0895 and 0.9625, respectively. The currency is seen finding resistance around 1.12 against the greenback and 0.98 against the franc.

The euro rose to 163.28 against the yen, reaching a 4-day high. On the upside, 166.00 is possibly seen as its next resistance level.

In contrast, the euro eased to 1.4926 against the loonie and 1.6602 against the aussie, from its prior highs of 1.4948 and 1.6635, respectively. The next likely support for the euro is seen around 1.46 against the loonie and 1.61 against the aussie.

The euro dropped to a 9-day low of 1.7987 against the kiwi and more than a 2-week low of 0.8681 against the pound, from its early highs of 1.8032 and 0.8707, respectively. The euro is poised to challenge support around 1.74 against the kiwi and 0.84 against the pound.

Looking ahead, Canada retail sales for September are due out in the New York session.

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