During early European deals on Monday, the euro declined against the currencies of U.S., Japan and Switzerland despite a rise in European stocks. The euro thus eased from a 10-day high against the franc.
But the euro largely showed choppy trading against the pound.
European stocks opened higher today, following a positive close in Asia on optimism about economic recovery.
Germany’s DAX is currently up by 0.22% and France’s CAC 40 index is climbing by 0.15%.
Eurozone M3 money supply recorded an annual growth of 1.1% in August, following a 0.2% rise in July, data from the European Central Bank showed today. Economists had expected only a 0.3% rise.
A separate report from the Conference Board showed that the eurozone’s leading economic indicator climbed 0.4% in August compared to July. This followed a 0.8% increase in July and a 0.5% rise in June.
“The [leading index] for the euro area suggests that the slowdown in economic activity should be moderating in the near-term,” said Jean-Claude Manini, Conference Board senior economist for Europe. “The initial impetus of the recovery has been fading and the broad based cooling down of leading indicators is a reminder of the fragility of the recovery.
The euro weakened against the U.S. dollar during early European deals on Monday. At present, the euro-dollar pair is worth 1.3427, down from last week’s close of 1.3495. If the euro falls further, it may likely target the 1.330 level.
Media reports said today that Moody’s had downgraded unguaranteed senior debt of Anglo Irish bank to Baa3 from A3.
In early European session on Monday, the euro declined against the Japanese yen. As of now, the euro-yen pair is worth 113.10, compared to Friday’s close of 113.70. On the downside, 112.3 is seen as the next target level for the European currency.
The euro that strengthened to a 10-day high of 1.3298 against the Swiss franc at 3:25 am ET Monday dropped thereafter. Currently, the euro-franc pair is worth 1.3245 and the next downside target level is seen at 1.312. At last week’s close, the pair was quoted at 1.3289.
In early European deals on Monday, the euro showed choppy trading against the pound. The euro-pound pair bounced between 0.850 and 0.852. The next downside and upside target levels for the pair are seen around 0.847 and 0.855, respectively.