European Currency Shows Mixed Trading Against Majors
Tuesday, the European currency showed mixed trading against its major counterparts. The euro declined to new multi-day lows against its British and Japanese counterparts, while climbed to an 8-day high against the Swiss franc. On the other hand, the euro pare its Asian session gains against the US dollar.
In economic news from Europe, the European Central Bank said Eurozone M3 money supply growth slowed to 1.8% year-on-year in September from 2.6% in August. Economists had expected the money supply to rise 2.2%.
French housing permits decreased 18.6% in the three months to September, data released by the Housing Ministry showed today. It follows a 25.4% fall in the three months to August.
Italian consumer confidence unexpectedly dropped in October, results of a survey revealed today. The sentiment indicator slipped to 111.7 in October from 113.6 in September, think tank ISAE said. Economists had forecast the index to rise to 113.7.
Against the US dollar, the European currency lost ground after hitting a high of 1.4929 at 2:55 am ET Tuesday. The euro-dollar pair is currently trading at 1.4890, compared to 1.4877 hit late New York Monday. The next downside target level for the pair is seen around 1.448.
The single currency that reached a high of 0.9138 against the British pound at 2:45 am ET Tuesday weakened thereafter. At 5:40 am ET, the euro-pound pair touched a 4-day low of 0.9079 with 0.898 seen as the next support level. The pair closed Monday’s North American session at 0.9108.
Against the Swiss franc, the 16-nation currency edged higher during Tuesday’s early deals. At 5:15 am ET, the euro-franc pair climbed to an 8-day high of 1.5165, compared to Monday’s closing value of 1.5148. If the pair gains further, 1.519 is seen as the next target level.
The euro hit a high of 137.39 against the Japanese yen during today’s early European deals. Thereafter, the euro-yen pair reversed its direction and is currently trading at a 5-day low of 136.63. On the downside, 135.6 is seen as the next target level for the pair. The pair closed Monday’s New York deals at 137.12.
Today, the Ministry of Finance raised Japan’s economic assessment for the second consecutive quarter. The ministry upgraded its evaluations for seven of the 11 regions. At the same time, it maintained the assessment of four regions from the previous quarter.
Despite difficult situation, the economy showed some signs of picking up, such as an increase in manufacturing activity, the ministry said in a report for three months ended September. But, the ministry retained its pessimistic assessment of employment conditions for all 11 regions.
From the U.S., the S&P/Case-Shiller home price index is scheduled to be released at 9 am ET. Economists expect an 11.90% year-over-year decline in the 20-city composite house price index for August.
At 10:00 am ET, the Conference Board is scheduled to release its consumer confidence report for October. The report is expected to show that the consumer confidence index rose to 53.5 in October.
