Euro Drops As Eurozone Economic Confidence Worsens
27 Mars 2018 - 8:57AM
RTTF2
The euro drifted lower against its most major opponents in the
European session on Tuesday, as Eurozone economic confidence
deteriorated for the third consecutive month in March due to
decline in expectations in industry, services and retail trade.
Survey data from European Commission showed that the economic
confidence index fell more-than-expected to 112.6 in March from
114.2 in February. The expected score was 113.3.
The industrial sentiment index came in at 6.4 versus 8.0 a month
ago. This marked decrease resulted from managers' more pessimistic
views on all three components, namely, production expectations, the
current level of overall order books, and the stocks of finished
products.
The European Central Bank Governing Council member Erkki
Liikanen cautioned about subdued price pressures in the euro area,
adding that there would not be abrupt changes to policy "soon."
"A gradual tightening of monetary policy will rest on a more
solid basis when indications of inflation rates to potentially
temporarily exceed two percent become more prominent in inflation
expectations," Liikanen said.
In other economic news, figures from the European Central Bank
showed that Eurozone money supply grew at a slower pace in
February.
The broad monetary aggregate M3 climbed 4.2 percent year-on-year
in February, weaker than the 4.5 percent rise seen in January. The
expected growth was 4.6 percent.
The currency held steady against its major rivals in the Asian
session, with the exception of the yen.
Reversing from an early near a 6-week high of 1.2476 against the
greenback, the euro weakened to 1.2410. The next likely support for
the euro is seen around the 1.22 level.
The 19-nation currency pulled back to 131.12 against the
Japanese yen, from near a 2-week high of 131.82 hit at 2:45 am ET.
On the downside, 130.00 is seen as the next support level for the
euro.
Data from the Bank of Japan showed that Japan's producer prices
rose 0.6 percent on year in February.
That was shy of expectations for 0.78 percent, which would have
been unchanged from the January reading.
Having advanced to a session's high of 1.1774 against the Swiss
franc, the euro reversed direction and retreated to 1.1749. If the
euro falls further, it may find support around the 1.15 level.
The euro retreated to 1.5959 against the loonie, 1.6067 against
the aussie and 1.7056 against the kiwi, from its early high of
1.6014, more than 2-year high of 1.6138 and a 6-day high of 1.7113,
respectively. The euro is likely to find support around 1.55
against the loonie, 1.56 against the aussie and 1.68 against the
kiwi.
On the flip side, the euro advanced to a weekly high of 0.8794
against the pound, from Monday's closing value of 0.8745. The euro
is seen finding resistance around the 0.89 region.
Looking ahead, U.S. S&P/Case-Shiller home price index for
January and consumer confidence index for March are due in the New
York session.
At 11:00 am ET, Atlanta Fed President Raphael Bostic speaks at
the Hope Global Forums Annual Meeting in Atlanta.
Euro vs Yen (FX:EURJPY)
Graphique Historique de la Devise
De Mar 2024 à Avr 2024
Euro vs Yen (FX:EURJPY)
Graphique Historique de la Devise
De Avr 2023 à Avr 2024