Euro Weakens Amid Risk Aversion
November 06 2017 - 1:32AM
RTTF2
The euro fell against its key counterparts in early European
deals on Monday, as European shares fell after disappointing
earnings reports and investors monitored U.S. President Donald
Trump's tour to Asia under heavy security.
Trump kicked off his 12-day Asian trip on Sunday with a tough
rhetoric against North Korea. "No nation should ever underestimate
American resolve," Trump said while landing at Yokota airbase near
Tokyo. In addition, investors waited for Brexit talks to resume in
Brussels on Thursday amid disagreement over what the U.K. must pay
as a final exit settlement.
In economic front, final data from IHS Markit showed that the
euro area private sector started the final quarter on a strong
footing but the pace of expansion slowed since September.
The composite output index fell to 56.0 in October from 56.7 in
September. But the reading was slightly above the flash estimate of
55.9 and also the indicator signaled expansion in each of the past
52 months. The currency showed mixed performance in the Asian
session. While it held steady against the greenback and the pound,
it rose against the yen. Against the franc, it declined. The single
currency eased back to 1.1613 against the franc, from a high of
1.1640 hit at 3:15 am ET. This may be compared to a 6-day low of
1.1604 set in Asian trading. The next possible support for the
euro-franc pair is seen around the 1.15 region.
The euro weakened to a 4-day low of 0.8841 versus the pound and
a 6-day low of 132.26 against the yen, off its early high of 0.8888
and a 4-day high of 133.12, respectively. Continuation of the
euro's downtrend may see it challenging support around 0.87 against
the pound and 131.00 against the yen.
The 19-nation currency reversed from an early high of 1.5195
against the aussie, edging down to 1.5141. If the euro extends
slide, 1.50 is likely seen as its next support level.
The common currency dropped to more than a 2-week low of 1.4786
versus the loonie, from its previous high of 1.4836. Against the
greenback, the euro hit 1.1588, its lowest since October 27. The
next possible support for the euro is seen around 1.46 against the
loonie and 1.15 against the greenback.
Pulling away from an early 4-day high of 1.6890 against the
kiwi, the euro fell back to 1.6811. The euro is seen challenging
support around the 1.66 area.
Looking ahead, at 10:00 am ET, Canada Ivey PMI for October is
set for release.
New York Fed President William Dudley speaks about lessons from
the financial crisis at the Economic Club of New York luncheon at
12:10 pm ET.
Euro vs AUD (FX:EURAUD)
Forex Chart
From Mar 2024 to Apr 2024
Euro vs AUD (FX:EURAUD)
Forex Chart
From Apr 2023 to Apr 2024