Euro Mixed Against Majors As Markets Focus On ECB Meeting
July 02 2012 - 6:31AM
RTTF1
The euro showed mixed trading against other major currencies in
European deals on Monday as investors digested the outcome of the
European Union summit held last week and have now turned their
attention to the unfolding week's European Central Bank monetary
policy meeting.
The ECB is scheduled to hold its regular monthly policy meeting
in Frankfurt on Thursday, just a week after Eurozone leaders
reached a deal to rescue the region's troubled banks.
Speculation grows that the central bank is likely to reduce
rates by 25 basis points to 0.75 percent, a move that could weigh
on the euro.
Though hopes of an interest rate cut by the ECB may strengthen
the single currency in the coming days, the U.S. market holiday on
Wednesday and the much-anticipated non-farm payrolls data due to be
released on Friday may prompt investors to trade currencies in a
narrow-range for most of this week.
The euro declined against its major counterparts in today's
Asian trading as investors doubted the outcome of the EU summit
last week, reasoning that it lacked the necessary detail to ease
concerns over European debt problems over the long-term.
The euro has extended its previous session's slide against
commodity currencies in early European deals and showed
directionless trading against the franc and pound. Against the
dollar and yen, the euro that attempted to recover its Asian
session's losses pulled back shortly.
The euro is currently worth 1.2630 against the dollar and 100.50
against the yen, down from highs of 1.2669 and 101.01, hit
respectively at 5:15 am ET. If the euro weakens further, it will
break its Asian session lows of 1.2613 against the dollar and
100.36 against the yen.
Against the pound, the euro showed choppy trading after hitting
a low of 0.8056 at 3:10 am ET. At present, the euro-pound pair is
worth 0.8060.
Elsewhere, the euro is trading at a 4-day low of 1.2844 against
the Canadian dollar and near a 4-month low of 1.2309 against the
Australian dollar. The next downside target level for the euro is
seen at 1.282 against the loonie and 1.220 against the aussie.
The euro is also trading at a 4-day low of 1.5723 against the
New Zealand dollar, with 1.560 seen as the next downside target
level.
The euro-franc pair is presently worth 1.2017, just coming off a
low of 1.2012 hit early in the session.
The final June manufacturing PMI reports from Italy, Germany,
France and Eurozone, which were released in the session failed to
influence the euro.
The Eurozone Purchasing Managers' Index for the manufacturing
sector remained unchanged in June at 45.1 from the prior month, but
stayed slightly above the flash estimate of 44.8, final data from
Markit Economics showed.
Looking ahead, the U.S. ISM manufacturing index for June and
construction spending for May are scheduled for release in the New
York morning session.
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