The euro came under pressure on Tuesday, as Greece struggled to reach a compromise with its international creditors over economic reforms attached with the bailout deal.
Experts from the International Monetary Fund and the European Union are studying the reform proposals which Athens has proposed to unlock bailout money. While eurozone officials complained that Greece’s plans lack necessary details, Greek Prime Minister Alexis Tsipras argued that he would not submit to creditors unconditionally. Greece will run out of money by April 20 unless it receive bailout funds by then.
Eurozone inflation and jobless rate are due shortly. While the inflation is expected to fall for the fourth month in March, the pace of decline is expected to slow from last month.
In economic news, Germany’s retail sales growth eased at a slower-than-expected pace in February, preliminary figures from Destatis showed.
Retails sales grew 3.6 percent year-over-year in February, slower than January’s 5.0 percent climb, which was revised from a 5.3 percent increase.
The euro was lower against its major opponents, except the franc, on Monday. The EUR/USD pair fell by 0.5 percent yesterday, hurt by continued standoff between Greece and its creditors.
The single currency declined to 1.0744 against the U.S. dollar, its lowest since March 20. Continuation of the euro’s downtrend may lead it to support around the 1.05 zone. The pair ended yesterday’s trading at 1.0831.
The euro declined by 0.5 percent to hit a 4-day low of 0.7277 against the Sterling. If the euro extends slide, it may find support around the 0.72 mark. At Monday’s close, the pair was valued at 0.7312.
Reversing from an early 4-day high of 130.25 against the yen, the euro slipped to a 4-day low of 129.17. The next possible downside target for the euro-yen pair may be located around the 128.00 area. The euro-yen pair was worth 130.03 when it ended Monday’s trading.
Japanese housing starts declined at a slower than expected pace in February, data from the Ministry of Land, Infrastructure, Transport and Tourism showed.
Housing starts dropped 3.1 percent in February from last year, slower than January’s 13 percent decline and an expected decrease of 7 percent.
The 19-nation currency pulled back from an early high of 1.0484 against the Swiss franc, and was steady in subsequent trading. The pair was trading at 1.0460, compared to yesterday’s New York session close of 1.0476.
The euro declined to 4-day lows of 1.3675 against the loonie and 1.4375 against the kiwi, off early high of 1.3748 and a 5-day high of 1.4458, respectively. The euro is poised to challenge support around 1.36 against the loonie and 1.40 against the kiwi.
The euro moved away from an early session’s high of 1.4180 against the aussie, edging down to 1.4113. Next key downside target for the euro may be found around the 1.41 mark.
Looking ahead, Canada GDP for January, U.S. S&P Case Shiller home price index for January, Chicago PMI for March and U.S. consumer confidence index for March are set to be published in the New York session.
At 7:55 am ET, U.S. Federal Reserve Bank of Richmond President Jeffrey Lacker is expected to speak on Economic outlook in Richmond.
Danièle Nouy, Chair of the ECB Supervisory Board, will deliver a speech before the European Parliament’s Committee on Economic and Monetary Affairs on Brussels at 9:00 am ET. At the same time, U.S. Federal Reserve Bank of Cleveland President Loretta Mester moderates a policy session at a conference in Stone Mountain, Georgia.
At 3:00 pm ET, U.S. Federal Reserve Bank of Kansas City President Esther George is expected to speak on the U.S. economy in New York.
by RTT Staff Writer
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