Euro Falls On Risk Aversion

21:54, 24th October 2014

(RTTNews) - The euro slipped against most major currencies in European deals on Friday, as fears of Ebola hit European markets after a doctor in New York tested positive for the disease.

The doctor was in Africa to treat Ebola patients and had returned recently. He is the first Ebola case diagnosed in New York, and the fourth in the U.S.

Traders also became cautious ahead of the European Central Bank's stress tests results due on Sunday. The health check on 130 eurozone banks is based on their financial positions at the end of 2013.

In economic news, German consumer climate for November improved unexpectedly, survey data by research group GfK revealed.

The forward-looking consumer confidence index rose slightly to 8.5 in November from 8.4 in October. The score was forecast to fall to 8.

The euro ticked down to 1.2634 against the greenback, from an early high of 1.2664, and held steady thereafter. The next possible downside target for the euro-greenback pair lies around the 1.25 zone.

Reversing from an early high of 0.7898 against the pound, the euro weakened to 0.7872. If the euro extends slide, 0.78 is seen as its next possible support level.

The U.K. economy grew at a slower pace in the third quarter, preliminary estimates from the Office for National Statistics Office showed.

Gross domestic product climbed 0.7 percent from the second quarter, when it grew 0.9 percent.

The euro ticked down to 1.2058 against the franc before holding steady thereafter. The euro is likely to face support around the 1.20 mark.

Moving away from an early 1-week high of 1.6219 against the NZ dollar and a 2-day high of 1.4513 against the aussie, the single currency fell to 1.6112 and 1.4395, respectively. Next key support for the euro may be found around 1.43 against the aussie and 1.61 against the kiwi.

The euro dropped to a 2-day low of 1.4172 against the loonie, compared to yesterday's closing value of 1.4199. Extension of downtrend may lead the euro-loonie pair to a support around the 1.41 region.

Looking ahead, U.S. new home sales for September are due at 10:00 am ET.