RTTNews Currency Alerts November 12, 2012-: Euro Weakens Ahead Of EU Finance Ministers Meeting

 

 

Currency Alerts

Euro Weakens Ahead Of EU Finance Ministers Meeting

11/12/2012 5:43 AM ET

The euro was trading mostly lower in early deals Monday on uncertainty over the U.S. fiscal cliff and the disbursement of the next tranche of aid for debt-laden Greece.
Euro bears dominated as positive sentiment faded ahead of a Eurozone finance ministers' meeting later in the day. According to reports, the euro zone meeting is unlikely to decide on Greek bailout, as the nation battles to raise funds to avoid defaulting on a 5 billion euros debt repayment due this week.
Optimism over healthy Chinese trade data was offset by the negativity triggered by figures showing Japan's economy contracted in the latest quarter.
China posted a merchandise trade surplus of $31.99 billion in October, blowing past expectations for $27.15 billion. Exports surged 11.6 percent year-over-year to $175.57 billion, beating forecasts for a 10 percent gain.
Japan's economy shrank 0.9 percent in the third quarter of 2012 compared to the previous three quarters, marking its first contraction in three quarters, the Cabinet Office said in a report. On a yearly basis, GDP dropped 3.5 percent, slightly worse than expectations for a contraction of 3.4 percent.
In economic news, Germany's wholesale price inflation accelerated to the highest level in eleven months in October, data released by the Federal Statistical Office showed today.
The wholesale price index increased 4.6 percent on an annual basis in October, faster than the 4.2 percent gain seen in September. Economists were looking for a 4.9 percent rise.
On a monthly basis, wholesale prices decreased a seasonally adjusted 0.6 percent in October, faster than the 0.3 percent decrease economists had forecast.
The euro erased most of its Asian session advance against the yen, pulling back to below 101.0 after posting modest gains above 101.30 earlier. The euro reached as low as 100.90 against the yen, down from 101.05 hit late New York Friday. The next likely support zone for the cross is seen around the 100.20/40 area.
Against the Swiss franc, the euro reached 1.2054 around 5:10 am ET, its lowest level since September 12. The euro-franc pair is now hanging in the 1.2055 area with 1.2040 seen as the next likely downside target level.
The common currency that advanced above the 0.8000 level against the pound in early Asian deals Monday erased gains in the London session. As of 5:14 am ET, the euro was trading at 0.7991 against the pound, down from a 5-day high of 0.8010 hit in the Asian session. Further downtrend could lead the pair break the 0.7970 support level.
The euro fell below the key 1.27 level against the dollar for the second consecutive session in early deals Monday, falling as low as 1.2699 around 3:05 am ET, down from Friday's closing value of 1.2715. Further selling pressure could lead the pair revisit Friday's low of 1.2691, which would set its weakest level in more than 2-months.
The euro has been the worst performer against the resource-linked currencies on Monday, slipping as low as 1.2178 against the aussie, its weakest level since August 31. The euro also reached a 5-day low of 1.5548 against the New Zealand dollar and a 4-day low of 1.2696 against the Canadian dollar around 5:00 am ET. On the downside, the euro may find near-term support levels at 1.2170 against the aussie, 1.2650 against the loonie and 1.5515 against the kiwi.
In Australia, the total number of owner occupied home loans was up a seasonally adjusted 0.9 percent to 46,395 on month in September, the Australian Bureau of Statistics said today. That misses forecasts for an increase of 1.0 percent following the upwardly revised gain of 2.1 percent in August.