The euro continued to be weaker against the other major currencies in the Asian session on Thursday, following the news that Greek lawmakers have approved the austerity plan demanded by its creditors.
Greece’s Parliament has approved the tough austerity measures required by the European Union, paving the way for Athens to receive the much-needed bailout loans of EUR 86 billion.
The European Central Bank’s Governing Council meets in Frankfurt later on Thursday, while Germany’s Parliament will reconvene to vote Friday on whether to start bailout negotiations.
Traders were also digesting remarks by Federal Reserve Chair Janet Yellen, who testified before the House Financial Services Committee. The testimony signaled a rate hike by the end of the year.
Wednesday, the euro fell 0.59 percent against the pound, 0.59 percent against the U.S. dollar and 0.17 percent against the Swiss franc.
In the Asian trading today, the euro fell to a 1-1/2-month low of 1.0912 against the U.S. dollar, more than a 2-week low of 0.6989 against the pound and a 6-day low of 135.14 against the yen, from yesterday’s closing quotes of 1.0940, 0.6995 and 135.46, respectively. If the euro extends its downtrend, it is likely to find support around 1.07 against the greenback, 0.67 against the pound and 132.00 against the yen.
Against the Swiss franc, the euro edged down to 1.0410 from an early high of 1.0428. At yesterday’s close, the euro was trading at 1.0418 against the franc. On the downside, 1.02 is seen as the next support level for the euro.
Looking ahead, Swiss retail sales for May and Eurozone trade balance for May and final CPI for June are due to be released in the European session.
The European Central bank will announce its interest rate decision at 7:45 am ET. Economists expect the bank to retain interest rates unchanged at 0.05 percent.
Following the announcement, European Central Bank President Mario Draghi will hold the customary post-meeting press conference.
In the New York session, U.S. weekly jobless claims for the week ended July 11 and U.S. NAHB housing market index for July are slated for release.
At 10:00 am ET, Yellen will testify on the Semiannual Monetary Policy Report before the Senate Banking Committee in Washington DC.
At 2:00 pm ET, Bank of England Governor Mark Carney is expected to speak at the Resolution Foundation, in Lincoln, England.
The material has been provided by InstaForex Company – www.instaforex.com