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​The euro declined against its major counterparts in the European session on Wednesday

2018-05-16 11:49 am | Resource: NEWS | No Views : 147

The euro declined against its major counterparts in the European session on Wednesday, as Eurozone inflation eased slightly in April, as estimated.

Final data from Eurostat showed that inflation slowed to 1.2 percent in April from 1.3 percent in March. The rate came in line with the estimate published on May 3.

Inflation continues to stay below the European Central Bank's target of 'below, but close to 2 percent'.

On a monthly basis, the harmonized index of consumer prices gained 0.3 percent in April.

Final data from Destatis showed that German consumer price inflation held steady in April, as previously estimated.

Consumer prices climbed 1.6 percent year-on-year in April, the same rate of increase as seen in March and in line with the estimate released on April 30.

Meanwhile, European stocks held steady as firmer commodity prices and some solid earnings updates helped investors shrug off North Korea's threat to scrap a historic summit next month between its leader Kim Jong Un and U.S. President Donald Trump.

The currency has been trading in a negative territory against its major opponents in the Asian session.

The euro eased back to 0.8760 against the pound, from a high of 0.8783 hit at 4:30 am ET. The currency is thus heading to pierce a 6-day low of 0.8755 set early in the Asian session. On the downside, 0.86 is likely seen as the next support for the euro.

The 19-nation currency dropped to 1.1801 against the greenback, its weakest since December 2017. This may be compared to a high of 1.1854 set at 3:30 am ET. If the euro continues its fall, 1.16 is possibly seen as its next support level.

The euro declined to a 6-day low of 129.99 against the Japanese yen, compared to 130.63 hit late New York Tuesday. The next possible support for the euro is seen around the 128.00 level.

Preliminary data from the Cabinet Office showed that Japan's gross domestic product contracted 0.2 percent on quarter in the first three months of 2018.

That missed expectations for a flat reading following the downwardly revised 0.1 percent gain in the three months prior.

Reversing from an early high of 1.1872 against the Swiss franc, the euro slipped to a new 5-week low of 1.1805. Next key support for the euro is likely seen around the 1.16 level.

The euro weakened to a 2-month low of 1.5773 against the aussie, 5-day lows of 1.5180 against the loonie and 1.7120 against the kiwi, off its early highs of 1.5867, 1.5245 and 1.7258, respectively. The euro is likely to find support around 1.56 against the aussie, 1.50 against the loonie and 1.70 against the kiwi.

Looking ahead, the European Central Bank President Mario Draghi will give remarks at an ECB event held in honor of Vítor Constâncio in Frankfurt at 8:00 am ET.

Canada manufacturing sales for March, U.S. housing starts, building permits and industrial production for April are scheduled for release in the New York session.

At 8:30 am ET, Atlanta Fed President Raphael Bostic speaks about the economic outlook at the Augusta Cotton Exchange.

The Bank of Canada Deputy Governor Lawrence Schembri will speak at a luncheon hosted by the Chartered Financial Analyst Society of Ottawa and the Ottawa Economics Association at 12:00 pm ET.

Simultaneously, the Swiss National Bank Governing Board Chairman Thomas Jordan delivers a speech about the Sovereign Money Initiative at a Vollgeld event in Zurich.

Other analysis

USD/JPY Technical analysis 15 January 2019

Time frame Used - four hours The USDJPY is moving in a sideway direction in the near term. The USDJPY is still facing resistance and selling pressure around the resistance level of 108.55 and is still suffering from signs of weakness and low volatility for the USD/JPY pair despite its consolidation above the 106.80 level , and the USD/JPY is unable to surpass the Bollinger's moving average line. In view…

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