Euro Slides Amid Risk Aversion
06:20, 20th October 2014
(RTTNews) - The euro weakened against the most major currencies in the European session on Monday as European shares fell amid weak corporate earnings.
Business software provider SAP SE cut its full-year profit forecast, while Royal Philips slipped to loss in the third quarter.
The U.K.'s FTSE 100 index is currently down 0.44 percent or 27.90 points at 6,282, France's CAC 40 index is down 0.67 percent or 26.87 points at 4,006 and Germany's DAX is down 0.97 percent or 85.90 points at 8,764.
The health of the global economy and fears of a possible recession in the eurozone worried the traders in the last week.
Meanwhile, data from the European Central Bank showed that the Eurozone current account surplus declined in August as the surplus on trade in services decreased notably. The current account surplus fell to a seasonally adjusted EUR 18.9 billion in August from EUR 21.6 billion in July.
In the Asian trading, the euro was slightly higher against most major currencies.
The euro fell to a 4-day low of 1.2059 against the Swiss franc, from an early 5-day high 1.2078. If the euro extends its downtrend, it is likely to find support around the 1.205 region.
Against the pound, the euro slipped to 6-day low of 0.7909 from an early high 0.7929. The euro may test support near the 0.78 region.
Pulling away from an early 10-day high of 137.00 against the yen, the euro edged down to 136.45. On the downside, 134.00 is seen as the next support level for the euro.
Looking ahead, Canadian wholesale sales for August is due to be released in the New York session.
At 7:50 am ET, European Central Bank's Vitor Constancio is scheduled to speak on Banking Regulations in London.
At 10:00 am ET, Federal Reserve Governor Jerome Powell will deliver a speech about community banking at the St. Louis Federal Reserve Webinar and Conference Call and also Fed's perspective on community banking, via satellite.
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