Euro Drops On Iran Sanctions
June 25 2019 - 2:44AM
RTTF2
The euro drifted lower against its major counterparts in the
European session on Tuesday, as European shares declined after a
U.S. official said on Monday that President Trump was "comfortable
with any outcome" from talks with Chinese President Xi Jinping at
the G20 meetings in Japan this weekend.
Geopolitical tensions also remained in focus after the United
States imposed new sanctions on Iran aimed at preventing some top
Iranian officials from using the international banking system or
any financial vehicles set up by European nations or other
countries.
Sharply criticizing the new sanctions, Iran said the measures
spell the "permanent closure" for diplomacy between the two
nations.
In economic front, data from Destatis showed that Germany's
construction orders declined in April from the previous month.
The price-adjusted orders in construction industry decreased by
a seasonally and working-day adjusted 1.7 percent month-on-month in
April.
The currency traded mixed against its major counterparts in the
Asian session. While it fell against the franc and the yen, it was
steady against the pound. Versus the greenback, it advanced.
The euro fell to 1.1378 against the greenback, from more than a
3-month high of 1.1412 hit at 12:45 am ET. The euro is seen finding
support around the 1.12 level.
The common currency dropped to 4-day lows of 0.8916 against the
pound and 121.81 against the yen, from its early high of 0.8952 and
near a 2-week high of 122.47, respectively. The next possible
support for the euro is seen around 0.88 against the pound and
120.00 against the yen.
The euro slipped to 4-day lows of 1.4992 against the loonie,
1.6326 against the aussie and 1.7122 against the kiwi, off its
previous highs of 1.5050, 1.6400 and 1.7222, respectively. If the
euro falls further, it may face support around 1.47 against the
loonie, 1.60 against the aussie and 1.70 against the kiwi. On the
flip side, the euro gained to 1.1112 against the franc, from an
early 5-day low of 1.1062. The euro is likely to challenge
resistance around the 1.13 mark.
Looking ahead, Canada wholesale sales for April, U.S. new home
sales for May, S&P/Case-Shiller home price index for April and
consumer confidence index for June will be featured in the New York
session.
At 1:00 pm ET, Fed Chairman Jerome Powell will give a speech
about the economic outlook and monetary policy at the Council on
Foreign Relations in New York.
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