The euro fell against the other major currencies in the Asian session on Thursday amid continuing concerns over Greece’s financial crisis.
Concerns over Greece’s financial health continued to be in focus, with little or no progress toward an agreement on the required economic reforms for the urgent financial aid from the European Union.
Market await the Eurozone officials meet in Latvia tomorrow to discuss Greek debt defaults and its exit from the eurozone.
Greece’s Deputy Finance Minister Dimitris Mardas earlier today indicated the state coffers to be 350-400 million euros short, with the government needing extra funds urgently to make wage and pension payments at the end of April.
Wednesday, the Euro rose against most major rivals, after European Central Bank Executive Board Member Benoit Coeure ruled out a Greek exit from the eurozone and said the central bank would continue providing liquidity to the Greek banks till they are solvent and have sufficient collateral.
The euro rose 0.18 percent against the U.S. dollar, 0.15 percent against the yen and 1.47 percent against the Swiss franc on Wednesday.
In the Asian trading today, the euro fell to more than a 5-week low of 0.7119 against the pound and a 2-day low of 1.0691 against the U.S. dollar, from yesterday’s closing quotes of 0.7130 and 1.0722, respectively. If the euro extends its downtrend, it is likely to find support around 0.70 against the pound and 1.04 against the greenback.
Against the Swiss franc, the yen and the Canadian dollar, the euro edged down to 1.0384, 128.33 and 1.3114 from yesterday’s closing quotes of 1.0415, 128.58 and 1.3121, respectively. The euro may test support near 1.01 against the franc, 125.50 against the yen and 1.30 against the loonie.
Looking ahead, PMI reports for April from major European economies and U.K. public sector finance data and retail sales data for March are slated for release in the European session.
At 3:45 am ET, European Central Bank board member Peter Praet is expected to speak at the “World monetary conference” in Berlin.
In the New York session, U.S. weekly jobless claims for the week ended April 18, U.S. Markit’s manufacturing PMI for April and U.S. new home sales data for March are set to be published.
The material has been provided by InstaForex Company – www.instaforex.com