Euro Declines Against Majors
April 16 2015 - 5:23AM
RTTF2
The euro declined against its major rivals in European deals on
Thursday, as the demand for German debt increased, pulling bond
yields down, following the European Central Bank President Mario
Draghi's remarks that the bank is determined to implement the
quantitative easing program in full to rejuvenate the bloc's
economic recovery.
The yields on German 30-year bonds fell 5 percent, while the
10-year bond yields slipped 0.09 percent. Yields move inversely to
bond prices.
In his press conference following the ECB meet on Wednesday,
President Mario Draghi stressed that although the bank's stimulus
measures are bearing fruits in the European economy, the region's
recovery depends on full implementation of the ECB's policies.
Draghi brushed aside concerns for an early QE exit, and said the
banks intends to continue the QE until September next year or until
officials "see a sustained adjustment in the path of inflation"
toward the medium term goal of just under 2 percent.
Meanwhile, Greece's inability to resolve differences with
international creditors has prompted the Standard & Poor's
Ratings Services to cut the country's credit ratings deeper into
junk territory. The agency lowered Greece's rating to "CCC+" from
"B-" with a negative outlook.
Although the euro firmed in the early Asian session, it
retreated in the course of trading. The euro has seen a relentless
slide from mid-2014 after the European Central Bank pursued
stimulus measures to aid economic recovery.
The euro slipped to a 2-1/2-month low of 1.0274 against the
franc before paring declines in a short while. The pair was trading
near yesterday's closing value of 1.0299.
The euro declined to 1.0625 against the greenback, 0.7163
against the pound and 126.79 against the yen, off early 1-week high
of 1.0746, 2-day high of 0.7230 and a 6-day high of 127.85,
respectively. The next possible support for the euro may be located
around 1.05 against the greenback, 0.70 against the pound and
125.00 against the yen.
The euro declined to a record low of 1.3998 against the kiwi,
compared to Wednesday's closing value of 1.4063.
The euro, which finished yesterday's trading at 1.3903 against
the aussie and 1.3128 against the loonie, weakened to near 2-year
lows of 1.3720 and 1.3098, respectively. The euro is likely to
challenge support around 1.35 against the aussie and 1.30 against
the loonie.
Looking ahead, U.S. building permits and housing starts - both
for March, U.S. weekly jobless claims for the week ended April 11
and Reserve Bank of Philadelphia's manufacturing index for April
are slated for release in the New York session.
At 1:00 am ET, Federal Reserve Bank of Atlanta President Dennis
Lockhart will deliver a speech about the US economic outlook and
monetary policy at the Palm Beach County Convention Center.
After 10 minutes, Federal Reserve Bank of Cleveland President
Loretta Mester will speak on the economy before the Forecasters
Club of New York.
Subsequently, Federal Reserve Bank of Boston President Eric
Rosengren participates in "The U.S. Economic Outlook and
Implications for Monetary Policy" event hosted by Chatham House in
London at 1:30 pm ET.
At 3:00 pm ET, Federal Reserve Governor Stanley Fischer will
participate in a panel discussion titled "The Elusive Pursuit of
Inflation" at the International Monetary Fund Spring Meetings in
Washington DC at 3:00 pm ET.
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