Euro Slips On Weak Equities
April 13 2012 - 6:06AM
RTTF2
The euro weakened against other major counterparts in the
European session on Friday as market sentiment dampened following a
slower than expected GDP growth in China.
Thus far, Germany's DAX lost 1.11 percent, France's CAC 40 index
edged down 1.18 percent and U.K.'s FTSE 100 index fell 0.57
percent.
The Chinese economy slowed more than expected in the first
quarter, data from the National Bureau of Statistics showed.
The gross domestic product expanded 8.1 percent year-on-year in
the first three months of 2012, slower than the fourth quarter's
8.9 percent increase. Economists were looking for a growth slowdown
to 8.4 percent.
In economic news, Germany's EU harmonized inflation slowed in
March as initially estimated, final data from the Federal
Statistical Office showed today.
The harmonized index of consumer prices for Germany, which is
calculated for European purposes, rose 2.3 percent annually, which
was slightly slower than the 2.5 percent growth seen in
February.
The European single currency slipped to 0.8257 against the pound
and 1.3144 against the greenback with 0.82 and 1.31 seen as the
next downside target levels, respectively. At Thursday's close, the
euro was worth 0.8265 against the pound and 1.3189 against the
greenback.
U.K. output price inflation slowed to 3.6 percent annually in
March from 4.1 percent in February, the Office for National
Statistics showed today. But it stayed slightly above the 3.5
percent consensus forecast.
Input price inflation also eased in March, to 5.8 percent from
7.8 percent in the prior month.
After touching a 3-day high of 107.12 against the yen in early
Asian deals, the euro fell shortly thereafter. The euro is now
trading at 106.49 against the yen and the next downside target
level for the euro is seen at 106.00.
Against the franc, the euro edged down to 1.2015 with 1.20 seen
as the next downside target level. The euro-franc pair ended
Thursday's deals at 1.2019.
The euro slipped to a 3-day low of 1.3096 against the Canadian
dollar, compared to 1.3117 hit late New York Thursday. If the euro
slides further, it may target 1.305 level.
The U.S. inflation report for March and the University of
Michigan's consumer confidence survey results for April are slated
for release in the New York session.
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