The euro slipped against its major counterparts in the European session on Tuesday, as data showed that German economic sentiment improved less than expected in March, as well as on concerns over the Netherlands’ elections tomorrow, amid rising tide of populism in Europe.
Survey data from the the Mannheim-based Centre for European Economic Research/ZEW showed that the ZEW Indicator of Economic Sentiment gained 2.4 points to 12.8 in March. The score was below the long-term average of 23.9 and the expected level of 13.0.
The current conditions index of the survey rose 0.9 points to 77.3 in March. The expected reading was 78.0.
Preliminary data from Eurostat showed that Eurozone industrial production growth eased at a faster-than-expected pace at the start of the year amid weaker gains in almost all sectors.
Industrial production rose 0.6 percent year-on-year following 2.5 percent growth in December, which was revised from 2 percent. Economists had forecast 0.9 percent gain.
With Dutch Parliamentary election due tomorrow, investors fret over strong showing of the eurosceptic candidate Geert Wilders in polls, which risks fragmentation of the currency bloc.
Opinion polls were divided on Monday, with two showing the ruling party ahead of the anti-European Union Freedom Party, while the other showed both of them are running almost neck-and-neck in the tight race.
The euro held steady against its major counterparts in the Asian session, with the exception of the pound.
The single currency dropped to a 4-day low of 1.0629 against the greenback, compared to Monday’s closing value of 1.0651. Continuation of the euro’s downtrend may see it challenging support around the 1.05 zone.
The euro declined to a 4-day low of 1.0719 against the Swiss franc and held steady thereafter. Further weakness may take the euro to a support around the 1.06 region.
Pulling away from an early high of 122.63 against the Japanese yen, the common currency slid to a session’s low of 122.14. The next possible support for the euro may be located around the 120.5 area.
The euro pared gains to 1.5374 against the kiwi, from a high of 1.5431 hit at 4:00 am ET. The euro is poised to find support around the 1.52 region.
The euro weakened to a 3-day low of 1.4053 against the aussie, after climbing to 1.4112 in the Asian session. The euro is seen finding support around the 1.39 zone.
On the flip side, the euro held firm against the pound with the pair trading at 0.8766. The pair was valued at 0.8718 when it finished Monday’s trading.
Bank of England’s Charlotte Hogg offered her resignation after lawmakers sharply criticized her for not disclosing about her brother’s job in Barclays Plc.
The Treasury Select Committee remarked in a report that Hogg’s “professional competence falls short of the very high standards required to fulfill the additional responsibilities of Deputy Governor for Markets and Banking”.
The material has been provided by InstaForex Company – www.instaforex.com
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