Forex News: Euro, Pound Fall As Most Asian Stock Markets

Euro, Pound Fall As Most Asian Stock Markets Traded Lower

(RTTNews) - The euro and the pound came under pressure against their major rivals in the Asian session on Tuesday, as traders remain cautious and reluctant to make significant moves ahead of the release of reports on U.S. consumer and producer price inflation, which are due in the next two days, and could have a significant impact on the outlook for interest rates.

Oil dipped slightly in Asian trade, after having climbed over 2 percent on Monday on the back of strong U.S. jobs data and the shutting in of at least 145000 of oil equivalent per day in the oil-rich province of Alberta.

The softer-than- expected chinese imports data also led to the drop of investor sentiment.

Data from the General Administration of Customs showed that imports declined 7.9 percent annually, which was much bigger than March's 1.4 percent drop and economists' forecast of 5.0 percent decrease. Exports registered an annual growth of 8.5 percent in April. Economists had forecast shipments to climb 8.0 percent after a 14.8 percent gain in March.

The trade balance showed a surplus of $90.21 billion in April. This was well above the expected level of $71.6 billion. The surplus totaled $88.2 billion in March.

In the Asian trading today, the euro fell to nearly a 5-month low of 0.8712 against the pound, from a recent high of 0.8722. On the downside, 0.85 is seen as the next support level for the euro.

Against the Swiss franc, the U.S. dollar and the yen, the euro dropped to 4-day lows of 0.9777, 1.0985 and 148.28 from yesterday's closing quotes of 0.9787, 1.1003 and 148.67, respectively. If the euro extends its downtrend, it is likely to find support around 0.96 against the franc, 1.08 against the greenback and 145.00 against the yen.

Against the Australia and the New Zealand dollars, the euro slipped to near 5-week lows of 1.6199 and 1.7328 from recent highs of 1.6229 and 1.7364, respectively. The euro may test support near 1.58 against the aussie and 1.69 against the kiwi.

The euro slid to nearly a 3-week low of 1.4689 against the Canadian dollar, from a recent high of 1.4716. The EUR/CAD pair may find its support level around the 1.43 area.

The pound dropped to a 4-day low of 1.1207 against the Swiss franc, from yesterday's closing value of 1.1221. The pound is likely to find support around the 1.09 area.

Against the U.S. dollar and the yen, the pound slipped to 4-day lows of 1.2604 and 170.14 from yesterday's closing quotes of 1.2617 and 170.42, respectively. If the pound extends its downtrend, it is may find support around 1.22 against the greenback and 164.00 against the yen.

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