Euro Falls Amid Risk Aversion

The euro declined against its major rivals in European deals on Thursday, as European shares declined, tracking weakness in Chinese market, ahead of the New Year break.

Investors continued to focus on the oil market amid persistent fears over supply glut after the U.S. Energy Information Administration reported an unexpected increase in U.S. crude supplies last week.

Trading activity is thin as German, Swiss and Italian markets are closed for New Year’s Eve, while U.K., France and the Netherlands will close early.

With economic calendar being empty in Europe, markets participants await U.S. weekly jobless claims, Chicago manufacturing PMI and Baker Hughes rig count data due later in the day for more direction.

The euro held steady against the greenback, pound and the yen in the Asian session. Against the Swiss franc, it trended higher.

The single currency hit a 2-day low of 131.42 against the yen, after having advanced to 131.78 at 6:30 pm ET. The euro-yen pair is likely to find support around the 130.00 region.

The euro eased back to 1.0805 against the franc, from a high of 1.0823 hit at 1:35 am ET. The next possible support for the euro may be found around the 1.075 mark.

The 19-nation currency edged down to 1.0915 against the greenback and 0.7355 against the pound, from its prior highs of 1.0937 and 0.7381, respectively. If the euro slides further, it may possibly find support around 1.08 against the greenback and 0.725 against the pound.

The common currency fell to more than a 3-month low of 1.4901 against the aussie, and held steady thereafter. This was down by 0.85 percent from a 2-day high of 1.5029 hit at 6:15 pm ET. On the downside, the euro is likely to challenge support around the 1.48 level.

Reversing from an early 2-day high of 1.5994 against the kiwi, the euro eased to 1.5900. The euro is seen finding support around the 1.58 area.

The material has been provided by InstaForex Company – www.instaforex.com

Tags: