Euro Lower Against Most Majors
May 25 2016 - 4:07AM
RTTF2
The euro declined against its most major opponents in European
trading on Wednesday, as European bonds yields fell after the
Eurozone finance ministers cleared the way for fresh loans for
Greece to avert debt default.
After the meeting in Brussels on Tuesday, Eurozone finance
ministers reached the accord with Greece that paved the way for the
disbursement of EUR 10.3 billion bailout fund.
The benchmark yield on 2-year German bonds fell 0.51 percent,
while that of 10-year note was lower by 0.16 percent. Yields move
inversely to prices.
German consumer confidence is set to strengthen in June, a
monthly survey by research group GfK showed. The consumer sentiment
indicator, based on a survey of around 2,000 Germans, rose to 9.8
from 9.7 in May. It was forecast to remain unchanged in June.
Meanwhile, the German Ifo Business Climate Index, which rates
the current German business climate and measures expectations for
the next six months, came in at 107.7 for May, up from 106.6 in
April and beating forecasts for a score of 106.
The euro was trading mixed in Asian deals. While the euro held
steady against the greenback and the franc, it rose against the
pound and the yen.
The euro declined to 0.7582 against the pound, its weakest since
February 3. On the downside, 0.74 is likely seen as the next
support level for the euro-pound pair.
Reversing from an early high of 1.1158 against the greenback,
the euro fell back to 1.1136. The euro is seen finding support
around the 1.10 mark.
The 19-nation currency slid to more than a 3-week low of 1.6464
against the kiwi, compared to 1.6526 hit late New York Tuesday.
Further weakness may take the euro to a support around the 1.63
level.
The euro dropped to a 9-day low of 1.1040 against the Swiss
franc, off its early high of 1.1069. If the euro extends decline,
it may find support around the 1.09 zone.
Survey data from the UBS investment bank showed that a measure
of Swiss consumption increased again in April, largely driven by
the positive trends in domestic tourism and new car
registrations.
The UBS Consumption Indicator climbed to 1.47 points in April
from 1.40 in the previous month, signalling solid performances in
the automotive and tourism markets.
On the flip side, the euro held steady against the yen,
following a 2-day high of 122.91 hit at 4:45 am ET. The pair
finished Tuesday's trading at 122.53.
Looking ahead, U.S. advance goods trade balance for April,
Markit's flash services PMI for May, FHFA house price index for
March and U.S. crude oil inventories data are slated for release in
the New York session.
At 9:00 am ET, Federal Reserve Bank of Philadelphia President
Patrick Harker is expected to speak on the economic outlook before
the Forum on America's Economy 2016 in Philadelphia.
The Bank of Canada's interest rate decision is due at 10:00 am
ET. The economists expect the bank to hold rates at 0.5
percent.
At 2:00 pm ET, Federal Reserve Bank of Dallas President Robert
Kaplan will participate in a moderated question-and-answer session
before the Greater Houston Partnership Thought Leader Series.
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