Forex News: Euro Slides Against Majors

Euro Slides Against Majors

(RTTNews) - The euro weakened against other major currencies in the European session on Tuesday, as traders are worried that protectionist policies by President-elected Donald Trump could disrupt the Eurozone's growth potential.

Trump stated throughout his campaign that all economies will suffer from the increased import duties imposed by the United States, but the European Union (EU) will be particularly hard hit. In the election campaign, Trump advocated imposing tariffs of 10-20 percent on all imports and 60 percent on goods from China.

Fears about the European Central Bank will lower interest rates by 25 or 50 basis points (bps) at its December meeting has intensified, due to concerns about Trump's foreign policy.

Rising geopolitical tensions in the wake of Ukraine's use of Western missiles against Russia, which has led to allegations that the Kremlin is threatening a nuclear retaliation, also weighed on the currency.

In economic news, data from the European Central Bank showed that the euro area current account surplus increased in September on a rebound in primary income. The current account surplus totaled EUR 37 billion in September, up from EUR 35 billion in the previous month. The surplus was forecast to fall to EUR 27.0 billion.

Data from Eurostat showed that the harmonized index of consumer prices posted an annual growth of 2.0 percent, as initially estimated. Inflation stood at 1.7 percent in September. Core inflation that excludes energy, food, alcohol and tobacco, remained unchanged at 2.7 percent in October, in line with the flash estimate.

In the European trading now, the euro fell to 4-day lows of 1.0524 against the U.S. dollar and 0.8333 against the pound, from early highs of 1.0601 and 0.8362, respectively. The euro may test support around 1.04 against the greenback and 0.81 against the pound.

Against the Swiss franc and the yen, the euro slid to nearly a 3-1/2-month low of 0.9304 and a 1-1/2-month low of 161.50 from early highs of 0.9362 and 163.81, respectively. If the euro extends its downtrend, it is likely to find support around 0.92 against the franc and 160.00 against the yen.

Against Australia, the New Zealand and the Canadian dollars, the euro slipped to a 1-week low of 1.6217, a 6-day low of 1.7906 and a 5-day low of 1.4766 from early highs of 1.6300, 1.8016 and 1.4858, respectively. The next possible downside target is seen around 1.60 against the aussie, 1.76 against the kiwi and 1.46 against the loonie.

Looking ahead, Canada CPI data for October, U.S. building permits and housing starts for October and U.S. Redbook reports are slated for release in the New York session.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2024 RTTNews.com. All Rights Reserved

Market News provided by RTTNews