Euro Declines Amid Lockdown Concerns In Europe
The euro came under pressure in the European session on Friday,
as risk sentiment dampened after Austria announced a full lockdown
and German Health Minister Jens Spahn refused to rule out the
possibility of imposing a new lockdown in the nation amid a
resurgence in virus cases.
Austrian Chancellor Alexander Schallenberg said that the country
will move into a fourth national lockdown on Monday and will make
Covid-19 vaccinations mandatory from February next year.
As per lockdown rules, the people will be permitted to leave
their houses only for seeking medical care, essential shopping and
Germany's pandemic situation has deteriorated over the past week
and a lockdown "can't be ruled out," Spahn said.
Chancellor Angela Merkel said on Thursday that the country will
introduce strict COVID-19 restrictions on unvaccinated citizens to
curb a surge in coronavirus cases.
The European Central Bank must not rush into a premature
tightening when faced with passing or supply-driven inflation
shocks, President Christine Lagarde said.
At the 31st Frankfurt European Banking Congress 2021, she said
tightening policy prematurely would only make the squeeze on
household incomes worse.
In economic news, data from Destatis showed that German producer
prices rose at the fastest pace since 1951.
Producer prices increased 18.4 percent year-on-year in October,
following a 14.2 percent rise in September. Prices were expected to
gain 16.2 percent.
The euro depreciated to a 2-day low of 1.1283 against the
greenback, 1-1/2-month low of 128.49 against the yen and more than
a 6-year low of 1.0448 against the franc, pulling away from its
early high of 1.1373, 2-day highs of 129.99 and 1.0529,
respectively. The euro is seen finding support around 1.10 against
the greenback, 125.00 against the yen and 1.03 against the
The euro retreated from its prior highs of 1.4332 against the
loonie and 1.5632 against the aussie, edging lower to 1.4261 and
1.5561, respectively. The next possible support for the euro is
seen around 1.40 against the loonie and 1.50 against the
The euro ticked down to 1.6106 against the kiwi at 4:30 am ET,
but it has since recovered to 1.6141. At yesterday's trading close,
the pair was quoted at 1.6128.
The euro reached as low as 0.8400 against the pound at 3:20 am
ET before bouncing off to 0.8426. On the upside, 0.86 is likely
seen as its next resistance level.
Looking ahead, Canada retail sales for September and new housing
price index for October are scheduled for release in the New York
Euro vs Yen (FX:EURJPY)
From Dec 2021 to Jan 2022
Euro vs Yen (FX:EURJPY)
From Jan 2021 to Jan 2022