Euro Falls As Eurozone Inflation Improve Less Than Forecast
November 30 2017 - 1:13AM
RTTF2
The euro dropped against its major counterparts in early
European deals on Thursday, after a data showed that inflation in
the euro area increased less than forecast in November.
Flash data from Eurostat showed that Eurozone consumer prices
advanced 1.5 percent year-on-year in November, following October's
1.4 percent increase. Inflation was forecast to rise to 1.6
percent.
Further undermining the currency was an unexpected decline in
German retail sales in October.
Figures from Destatis showed that German retail turnover dropped
1.4 percent year-on-year in October, which was the first fall in
eight months. Economists had forecast a 2.8 percent increase
following September's 4.1 percent rise.
Meanwhile, separate data from Eurostat showed that the euro area
jobless rate fell to the lowest since early 2009.
The unemployment rate dropped to 8.8 percent in October from 8.9
percent in September. This was the lowest since January 2009. The
rate was forecast to remain unchanged at 8.9 percent.
European shares are trading mixed as a sell-off in technology
stocks subsided and investors focused on the OPEC meeting that got
underway in Vienna.
Conflicting statements from oil ministers on output cut deal
extension made investors wary.
The currency traded mixed in the Asian session. While it rose
against the yen, the greenback and the franc, it fell the
pound.
The euro weakened to 0.8777 against the pound, its lowest since
November 2.The euro is seen finding support around the 0.865
mark.
Reversing from an early 2-day high of 1.1694 against the franc,
the euro dropped to 1.1649. Continuation of the euro's downtrend
may see it challenging support around the 1.15 region.
Data from the State Secretariat for Economic Affairs showed that
Switzerland's economic growth accelerated in the third quarter.
Gross domestic product expanded 0.6 percent in the third quarter
from the second quarter, when it grew by revised 0.4 percent. The
rate came in line with expectations.
The 19-nation currency slipped to an 8-day low of 1.1809 against
the greenback, after having advanced to 1.1876 at 2:15 am ET. The
next possible support for the euro-greenback pair is seen around
the 1.17 area.
Following a 2-week high of 133.31 hit against the yen at 2:30 am
ET, the euro dropped to 132.66. Further weakness may take the euro
to a support around the 131.00 mark.
Data from the Ministry of Land, Infrastructure, Transport and
Tourism showed that Japan's housing starts declined for the fourth
straight month in October, and at a faster-than-expected pace.
Housing starts fell 4.8 percent year-on-year in October, bigger
than September's 2.9 percent decrease. That was also above the 2.8
percent drop economists had forecast.
The euro retreated to 1.5614 against the aussie, 1.7273 against
the kiwi and 1.5223 against the loonie, from its early high of
1.5679, 3-day high of 1.7355 and a 1-1/-2-year high of 1.5286,
respectively. If the euro falls further, it may locate support
around 1.55 against the aussie, 1.70 against the kiwi and 1.50
against the loonie.
Looking ahead, U.S. weekly jobless claims for the week ended
November 25, personal income and spending data for October and
Chicago PMI for November are set for release in the New York
session.
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