The euro weakened against the other major currencies in the early European session on Thursday, after European Central Bank policymaker Ewald Nowotny said that new measures are necessary as inflation in the euro area runs well below the European Central Bank’s target.
“The ECB is using the monetary-policy instruments available, but in my view it is quite obvious that in the current economic situation additional sets of instruments are necessary,” Nowotny said in a speech in Warsaw.
He noted that “additional” instruments include structural measures, as well as measures to stimulate demand.
In the Asian session today, the euro held steady against its major rivals.
In the early European session, the euro fell to a 6-day low of 135.21 against the yen, from an early 3-day high of 136.73. If the euro extends its downtrend, it is likely to find support around the 134.00 area.
Against the pound, the Canadian and the Australian dollars, the euro dropped to a 6-day low of 0.7382, a 3-day low of 1.4716 and a 2-day low of 1.5531 from early highs of 0.7423, 1.4849 and 1.5722, respectively. The euro is likely to find support around 0.73 against the pound, 1.45 against the loonie and 1.52 against the aussie.
Pulling away from an early more than 1-1/2-month high of 1.1494 against the U.S. dollar, the euro slid to 1.1424. The euro may test support near the 1.12 area.
Against the NZ dollar and the Swiss franc, the euro slipped to more than a 2-month low of 1.6583 and more than a 3-week low of 1.0857, from early highs of 1.6907 and 1.0907, respectively. On the downside, 1.62 against the kiwi and 1.07 against the franc are seen as the next support levels for the euro.
Looking ahead, U.S. weekly jobless claims for the week ended October 10, U.S. CPI data for September, U.S. crude oil inventories report, U.S. Federal Reserve Bank of Philadelphia’s manufacturing index for October and Canada existing home sales data for September are due to be released in the New York session.
At 10:30 am ET, Federal Reserve Bank of New York President William Dudley will participate in a panel discussion titled “The Fed at Crossroads: Where to go Next?” at the Brookings Institution, in Washington DC.
At the same time, Federal Reserve Bank of St. Louis President James Bullard gives opening remarks before the 40th Annual Fall Policy Conference hosted by the Federal Reserve Bank of St. Louis.
At 4:30 pm ET, Federal Reserve Bank of Cleveland President Loretta Mester is expected to speak on “Determinants of Long-Run Growth and Future Growth Prospects” before the New York University Stern School of Business.
The material has been provided by InstaForex Company – www.instaforex.com