Euro Slides To New Multi-day Lows Against Franc And Yen
Wednesday, the European currency declined to new multi-day lows against its Swiss and Japanese counterparts, driven by a fall in stock prices. The euro also edged down against the US dollar and the British pound.
European shares hit a three-week low today as investors digested a slew of earnings news.
By 4:14 am ET, the pan-European FTSEurofirst 300 .FTEU3 index of top shares was down 0.8 percent at 991.28 points after falling to a low of 990.33, the lowest since Oct 8.
In economic news, Germany’s Federal Statistical Office announced that the import price index decreased 11% year-on-year in September, compared to the 10.9% fall in the previous month. Economists were looking for a decline of 10.7%.
On a monthly basis, import prices dropped 0.9% in September, in contrast to a 1.3% increase in the previous month. Economists expected a decrease of 0.7%.
Another report showed that Italian manufacturers’ confidence rose more than expected in October, while retailers’ and service providers’ sentiment deteriorated.
Manufacturers’ confidence indicator rose to 77.1 in October from a revised 74.3 in September, economic think tank ISAE said today. Economists had forecast an increase to 75.
Against the US dollar, the European currency lost ground after hitting a high of 1.4842 at 2:55 am ET Wednesday. At 5:50 am ET, the euro-dollar pair slipped to 1.4775, compared to 1.4804 hit late New York Tuesday. The next downside target level for the pair is seen around 1.467.
The single currency that reached a high of 0.9070 against the British pound at 2:10 am ET Wednesday weakened thereafter. At 4:45 am ET, the euro-pound pair touched a low of 0.9036. The pair that closed Tuesday’s North American session at 0.9046 is now worth 0.9050 with 0.900 seen as the next support level.
Against the Swiss franc, the 16-nation currency edged down during Wednesday’s early deals. At 5:55 am ET, the euro-franc pair declined to a 5-day low of 1.5115, compared to Tuesday’s closing value of 1.5129. If the pair falls further, 1.509 is seen as the next target level.
The euro traded down against the Japanese yen during today’s early European deals. The euro-yen pair is presently trading at a 13-day low of 134.49. On the downside, 133.9 is seen as the next target level for the pair. The pair closed Tuesday’s New York deals at 135.89.
From the U.S., the durable goods orders and the new home sales report-both for the month September are expected in the New York session.
Investors are also treading cautious path ahead of slew of earnings and economic reports due for release during the course of the week.
