Euro Weakens In Cautious Trade
30 December 2021 - 5:43PM
RTTF2
The euro dropped against its major counterparts in the European
session on Thursday, as a rapid spread of the Omicron variant of
Covid-19 clouded global economic outlook.
Data from Johns Hopkins University showed that global infections
exceeded 284 million, while the deaths surpassed 5.44 million.
France and the U.K. reported a record rise in daily infections
on Wednesday. The seven-day average of new cases rose above 277,000
in the U.S.
European Central Bank governing council member Ignazio Visco
said that inflation forecasts of below 2 percent in 2023-2024 could
be exposed to the downside and upside risks.
Inflation in the Eurozone could remain above the central bank's
goal of 2 percent after 2022, ECB policymaker Klaas Knot said.
Trading volumes were thin as the year-end holidays
approached.
The euro declined to 1.1300 against the greenback, 1.4471
against the loonie and 130.12 against the yen, after rising to
1.1360 and 1.4522 and 1-1/2-month high of 130.59, respectively in
prior deals. The next possible support for the euro is seen around
1.10 against the greenback, 1.42 against the loonie and 127.5
against the yen.
The euro dipped to a fresh 5-week low of 0.8392 against the
pound, from a high of 0.8417 seen at 6:45 pm ET. Next key support
for the currency is seen around the 0.82 region.
The European currency touched a 6-day low of 1.6553 against the
kiwi and near a 5-week low of 1.5569 against the aussie, down from
its early highs of 1.6619 and 1.5661, respectively. The euro may
locate support around 1.62 against the kiwi and 1.53 against the
aussie.
The euro slipped to 1.0366 against the franc, after a 2-day rise
to 1.0384 at 9:15 pm ET. On the downside, 1.01 is possibly seen as
its next support level.
Looking ahead, U.S. weekly jobless claims for the week ended
December 24 will be out in the New York session.
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