Euro Declines Amid Greek Jitters
Canbera-Australia (Feb 10) The euro declined against its major opponents in early European deals on Tuesday, as both the Greek government and its creditors looked far apart in reaching a deal on Greece bailout program, intensifying concerns about Greece's future in the currency bloc.
While the Greek Prime Minister Alexis Tsipras refrained to extend its reform-linked bailout, German Chancellor Angela Merkel showed no signs of compromise in implementing austerity measures, saying the current programme was "the basis of any discussions that we have" over a new bailout.
Jean-Claude Juncker , the European Commission president, cautioned on Monday that Greeks should not expect the euro zone to accept the Tsipras government programme without any limitations.
Traders await an emergency meeting of finance ministers from the euro area on Wednesday, followed by an EU summit on Thursday, for further talks about Greece bailout debt.
The single currency reached as low as 1.1275 against the greenback and 0.7415 against the pound, compared to Monday's closing values of 1.1322 and 0.7439, respectively. The next possible support for the euro-greenback and the euro-pound pairs are seen at 1.10 and 0.725, respectively.
Moving away from an early high of 134.57 against the yen, the euro edged down to 134.03. The euro is poised to challenge support around the 130.00 zone.
The 19-nation currency reached as low as 1.0432 against the Swiss franc and has been steady since then. On the downside, the euro is likely to face support around the 1.00 mark.
Swiss consumer prices declined at the fastest pace in nearly two years, but the fall was less than what economists predicted, figures from the Federal Statistical Office showed.
The consumer price index fell 0.5% annually following a 0.3% drop in December.
The euro that ended yesterday's trading at 1.4115 against the loonie slipped to 1.4083. If the euro slides further, 1.40 is seen as its next support level.
Meanwhile, the US dollar lifted up on safe-have appeal amid renewed wariness over Greek debt problems.
The greenback appreciated to 119.01 against the Japanese yen and 0.9273 against the franc, off previous lows of 118.39 and 0.9212, respectively. Next key resistance levels for the greenback may be located around 120.00 against the yen and 0.94 against the franc.
The greenback advanced to 1.5196 against the pound, its strongest since February 5 , compared to 1.5214 hit at Monday's close. Continuation of the greenback's uptrend may lead it to a resistance around the 1.50 level.
UK industrial production declined more than expected in December, while the manufacturing sector maintained its growth, the data from Office for National Statistics showed.
Industrial output fell 0.2% from the prior month, after staying flat in November. It was expected to fall by 0.1%
The greenback climbed back against the Canadian dollar, trading at 1.2491. The greenback may likely test resistance around the 1.265 mark.
The greenback reversed from an early low of 0.7438 against the kiwi and a 4-day low of 0.7841 against the aussie, rising to 0.7383 and 0.7760, respectively. The greenback is seen finding resistance around 0.725 against the kiwi and 0.75 against the aussie.
Looking ahead, Federal Reserve Bank of Richmond President Jeffrey Lacker will deliver a speech titled "Education, Innovation and Economic Growth" at the 30th Annual Emerging Issues Forum , in Raleigh at 8:20 am ET .
US wholesale inventories for December are due at 10:00 am ET .
Source: AllinaceNews
